Electricity Tariff Set To Rise

Consumers are in for more charges as the Federal Government may approve the take-off of a new tariff regime of N8.50k by the first week of June this year if gas supply remains stable. The current tariff is N6 per kilowatt.

The disclosure came as the Power Holding Company of Nigeria (PHCN) announced yesterday that power generation had increased to 3,600 megawatts.

The Assistant General Manager, Rates and Competition of Nigeria Electricity Regulatory Commission (NERC), Dr. Dikko Halilu, said at the flag-off of stakeholders’ forum on metering code in Abuja that the commission had issued a notice to commence minor review of electricity tariffs.

“We have already given out notice for a minor review of prices. Under the review, we are going to look into whether there have been any escalation in cost of gas and changes in exchange rates before it can be effected.

“As you know, the cost of gas, inflation rate and exchange rate affect the operator’s cost. Latest by the first week of June, we are going to change the tariff price to N8.50k; though we do not expect that to happen because the rate of inflation has come down; material cost and exchange rates have stabilised to some extent,” he said.

“We will enter into an agreement with NGC that if there is more gas, then we will agree to an increase in the price of gas. Presently, gas price is pegged at about $88 last year, but this year it is being expected to go for $132 per cubic feet,” he added.
He said with the expected increase in gas price, the tariff was being projected to be N8.15k per kilowatt.
According to Halilu, government while considering the approval of the new tariff would be looking at how to help the operators recover cost.

ss“If the price granted to electricity producers are not enough for them, then they have to show adequate justification for another increase. We are only to allow efficient cost and nothing short of that. Whatever will enable producers to recover their cost of production and a reasonable return on investment is what we will consider,” he said.

Sole Administrator of NERC, Mallam Imamuddeen Talba, said the purpose of the metering code is to improve service delivery to consumers and to ensure proper accountability through accurate metering.

Talba said the task of the committee on metering code is to monitor its effective implementation in order to achieve accurate measurement of electricity utilisation in the country.

Meanhwile, the Managing Director of PHCN, Mr. Hussein Labo, has confirmed that power generation has increased to 3,600mw. He also said all power stations are currently generating power, a position that was corroborated by NERC.

“In the last two days, electricity has gone up to 3,500mw on Wednesday and 3,600mw yesterday and almost all the power plants are running,” he said.