Energy

NERC says tariff increase not guaranty for improved power supply

The Nigeria Electricity Regulatory Commission (NERC) has explained that the planned increase in electricity tariff was not a guarantee for steady power supply.

A statement by NERC’s Head of Public Affairs, Dr. Usman Abba Arabi, said the commission was empowered under the Electric Power Sector Reform (EPSR) Act to provide a cost reflective tariff.

Arabi stressed that the planned review of tariff would be done at an appropriate time to ensure that the electricity market remains operational.

He said, “The NERC has never stated that only an increase in electricity tariff would guarantee a steady power supply in the country. The commission’s position had been that a review was necessary due to the economic recession in the country.”

According to him, the poor remittance by electricity distribution companies (Discos) and the multiple restraining court orders were constraints to the commission.

He added that the orders also limit the Nigerian Bulk Electricity Trading Company (NBET) from enforcing the market rules on Discos and other operators.

Arabi explained that the other factors affecting electricity supply in the country include the inflation rate of 18.55 per cent, the exchange rate of the naira per dollar and the current electricity generation of 4000MW.

Meanwhile, activities at the Ministry of Power, Works and Housing and the Transmission Company of Nigeria (TCN) were disrupted in Abuja yesterday.

This followed the protest by the Senior Staff Association and Allied Electricity Company (SSAAEC) and the National Union of Electricity Employees (NUEE).

The workers were protesting against the plot by the Minister, Mr. Babatunde Fashola, to remove the TCN’s Managing Director, Dr. Atiku Abubakar, and replace him with Usman Gor Mohammed, who is currently on the employment of the African Development Bank.

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