The Nigeria Electricity Regulatory Commission (NERC) says the planned review of electricity tariff in the country would be done at an appropriate time to ensure that the electricity market remains operational.
But, the commission maintained that 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.
“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,” NERC said in the statement.
According to the statement, the poor remittance by electricity distribution companies (Discos) and the multiple restraining court orders were constraints to the commission.
It added that the orders also limit the Nigerian Bulk Electricity Trading Company (NBET) from enforcing the market rules on Discos and other operators.
It 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 4,000MW.