{"id":123635,"date":"2025-11-06T15:38:25","date_gmt":"2025-11-06T14:38:25","guid":{"rendered":"https:\/\/pointblanknews.com\/pbn\/?p=123635"},"modified":"2025-11-06T15:38:25","modified_gmt":"2025-11-06T14:38:25","slug":"niso-urges-balance-between-tariff-hike-energy-access","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/niso-urges-balance-between-tariff-hike-energy-access\/","title":{"rendered":"NISO urges balance between tariff hike, energy access"},"content":{"rendered":"<div style=\"text-align: justify;\">By \u200eDaniel Adaji<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eThe Nigerian Independent System Operator (NISO) has called for a careful approach to tariff reforms in the power sector to ensure that higher electricity costs do not worsen the struggle of millions already facing energy poverty.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eSpeaking on Thursday in Abuja at the 5th Annual Power Correspondent Association of Nigeria Conference, the Managing Director and Chief Executive Officer of NISO, Engr. Abdu Mohammed, said the sector must find \u201cthe equilibrium between commercial sustainability and social fairnes, between ensuring that our operators remain viable and ensuring that no Nigerian is pushed further into energy poverty.\u201d<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eThe conference examined the theme: Cost Reflective Tariff vs. Energy Poverty: Finding a Pricing Balance in the Nigerian Power Sector.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eHis remarks come against the backdrop of ongoing tariff adjustments across the country, including Band A customers paying significantly higher rates per kilowatt-hour in a move designed to reduce the government\u2019s subsidy burden. Nigeria recently cut electricity subsidies by about 35 per cent after raising tariffs for higher-consuming residential and commercial users.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eMohammed described tariff design as \u201cthe heartbeat of the power sector.\u201d He said it influences whether utilities can recover costs, whether investors get credible returns, and whether consumers can afford to stay connected.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eHe explained that despite tariff reviews guided by the Multi-Year Tariff Order, persistent liquidity shortfalls, under-recovery by distribution companies, poor investment in infrastructure, and weak supply reliability continue to undermine progress and consumer confidence.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eAccording to him, political and social pressures have kept tariffs \u201cbelow actual cost levels,\u201d creating a market that \u201cstruggles to attract investment, sustain operations, and deliver the level of service that Nigerians rightly expect.\u201d<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eHe stressed the need to confront the reality of energy poverty. \u201cEnergy poverty is not just about a lack of connection; it is about the inability to afford sufficient power for daily life and productive enterprise,\u201d he said, adding that inflation and declining incomes have weakened people\u2019s ability to pay more for electricity.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e\u201cThe real question, therefore, is not whether we should have cost-reflective tariffs, but how to achieve them in a way that preserves affordability and protects the most vulnerable among us,\u201d he stated.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eTo strike the right balance, he proposed \u201cthoughtful, multidimensional strategies\u201d including targeted subsidies that focus on low-income households instead of blanket support that distorts pricing and sustains inefficiencies. He said lifeline tariffs and welfare-linked rebates could protect those who need support the most.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eHe added that reducing technical, commercial, and collection losses would significantly lower costs for consumers. \u201cEvery percentage point of loss recovered translates directly to lower costs for consumers,\u201d he said, calling for improved metering, grid automation, accurate data, and discipline across the industry.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eMohammed added that transparency must be \u201cnon-negotiable\u201d to build investor confidence and ensure tariff reviews reflect verified performance improvements. He highlighted NISO\u2019s deployment of digital monitoring tools and upgrades to grid management systems such as SCADA and Energy Management Systems as key steps toward accountability.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eHe also backed the decentralisation drive of the new Electricity Act, saying micro-grids, off-grid solutions and embedded generation could lower transmission costs and improve reliability.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eTransitioning to cost-reflective pricing, he emphasized, should be gradual and tied to visible service improvements. \u201cConsumers are more willing to pay when they experience reliability and fairness.\u201d<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eMohammed urged the Nigerian Electricity Regulatory Commission to maintain regulatory certainty to reassure investors and prevent political disruptions to tariff decisions.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eHe also pushed for reforms across the wider energy ecosystem, such as gas pricing reform and stronger data governance, to improve planning and lower the cost of power generation in the long term. Investments in energy efficiency, he said, would help consumers better manage consumption costs.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eAbove all, he said tariff adjustments must be explained clearly so that Nigerians understand they are meant to stabilize the power system, not punish the public.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e\u201cUltimately, our collective goal is not simply to raise electricity prices, but to build a sector that works, a sector that can finance its own growth, sustain investor confidence, deliver reliable supply, and ensure that no Nigerian is left in the dark because of inability to pay,\u201d he said.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200e\u201cCost-reflective tariffs and energy affordability are not mutually exclusive. With intelligent policy design, operational efficiency, and targeted social protection, they can coexist creating a sector that is financially sound and socially just,\u201d he added.<\/div>\n<div style=\"text-align: justify;\">\u200e<\/div>\n<div style=\"text-align: justify;\">\u200eHe added that NISO remains committed to promoting transparency, reliability and fairness for all participants in the Nigerian electricity market. \u201cTogether, let us continue to build a power sector that powers not just homes and industries, but also the hopes, dignity, and prosperity of our nation,\u201d he said.<\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>By \u200eDaniel Adaji \u200e \u200eThe Nigerian Independent System Operator (NISO) has called for a careful approach to tariff reforms in the power sector to ensure that higher electricity costs do&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":123636,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-123635","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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