As the nationwide controversy on the recent increase in electricity tariff makes headlines, President Muhamamdu Buhari recently assured Nigerians, that this increase will only affect those who get 12 hours supply of electricity daily. Consumers who receive less than 12 hours supply or the Band D and E customers, must be maintained on online tariffs, which means they will experience no increase in tariff.
This was made clear by the president at the First Year Ministerial Performance Review Retreat in Abuja, where he was represented by Vice President Yemi Osibanjo.
Buhari expressed concern over the poor service delivered by distribution companies, noting that N1.7 trillion had been spent to subsidise electricity supply. However, the government no longer has the resources to continue.
Buhari noted that he had ordered Nigerian Electricity Regulatory Commission (NERC), to strictly enforce the capping regulation, which will ensure that unmetered customers aren’t charged beyond the metered customers.
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He said: “Let me say frankly that like many Nigerians, I have been very unhappy about the quality of service given by the DisCos, but there are many constraints including poor transmission capacity and distribution capacity. I have already signed off on the first phase of the Siemens project to address many of these issues.
“Because of the problems with the privatisation exercise, government has had to keep supporting the largely privatised electricity industry. So far, to keep the industry going we have spent almost N1.7 trillion, especially by way of supplementing tariffs shortfalls. We do not have the resources at this point to continue in this way and it will be grossly irresponsible to borrow to subsidise a generation and distribution which are both privatised” he regretted, but noted that the Federal Government has a duty to ensure that Nigerians who cannot afford to pay cost reflective tariffs are protected from increases. “But we also have a duty to ensure that the large majority of those who cannot afford to pay cost reflective tariffs are protected from increases. NERC, the industry regulator, therefore approved that tariff adjustments had to be made but only on the basis of guaranteed improvement in service. Under this new arrangement only customers who are guaranteed a minimum of 12 hours of power and above can have their tariffs adjusted.”
