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Amidst Coronavirus Lockdown Electricity Tariff To Increase On Wednesday- NERC Releases Report

Amidst Coronavirus Lockdown Electricity Tariff To Increase On Wednesday- NERC Releases Report


According to reports, Power supply worsens in Nigeria despite the current situation
in Nigeria electricity tariff will increase from Wednesday as declared by NERC.


In a report gathered that Nigerians will from Wednesday, April 1 2020 pay more for electricity.

The Nigerian Electricity Regulatory Commission had disclosed this in its December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020

Fact Checks by The PUNCH on Monday showed that the decision to increase tariff had not yet been suspended despite the lockdown occasioned by the COVID - 19 pandemic.

Report obtained that a top source at Ikeja Electric told The PUNCH that the firm had not received any directive from NERC as regards reversal of the plan

He said;

“ According to the tariff order for the year  we are supposed to increase on April 1  2020  So far, we have not received any directive not to go ahead  ”

VAM news Efforts to reach the NERC to speak on the matter were not successful on Monday as the spokesman for the commission  Usman Arabi, said he was not around but on a course at the National Institute for Policy and Strategic Studies

Meanwhile, Arabi’ s substitute  however, did not respond to calls or a text message sent to him.

NERC had disclosed in its December 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020 that the order was issued to reflect the impact of changes in the minor review variables in the determination of cost-reflective tariffs and relevant tariff and market shortfalls for 2019 and 2020

The commission said the order also determined the minimum remittances payable by the distribution companies in meeting their market obligations based on the allowed tariffs

It said  “ The Federal Government ’s updated Power Sector Recovery Programme does not envisage an immediate increase in end-user tariffs until April 1, 2020, and a transition to full cost reflectivity by end of 2021

“ In the interim, the Federal Government has committed to funding the revenue gap arising from the difference between cost-reflective tariffs determined by the commission and the actual end-user tariffs payable by customers. ”

According to NERC, all Discos are obligated to settle their market invoices in full as adjusted and netted off by applicable tariff shortfall

It said, “ All FGN intervention from the financing plan of the PSRP for funding tariff shortfall shall be applied through NBET and the market operator to ensure 100 percent settlement of invoices issued by market participants

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