Prof. Chinedu Nebo, Minister of power speaking at the Power Nigeria 2014 in Lagos recently has ruled out any raise in electricity tariff until power supply increases. He also said that efforts were being made to curb estimated billing in the Nigerian electricity supply industry.
“We don’t want to see any increase in tariff until power generation and distribution increase, because people want to see electricity. We are talking of megawatts; the person in the village doesn’t care about megawatts. What he or she cares about is electricity,” he reported.
The Nigerian Electricity Regulatory Commission approved a new electricity tariff in May, which was effective on June 1, with an increase in energy cost and reduction in fixed charges.
One of the major indices for the minor review was “available generation capacity,” NERC had said, adding that the gross accessible capacity from the grid as of the March 21, 2014 review date was 4,306MW, well below the 9,061MW that it had projected.
“Yes, there will be adjustment if electricity stabilises and it is stabilising, and if we are able to go beyond what we are doing now, and it will in the next couple of months. And then, we will look at the whole thing and see what cost is reflective enough,” Nebo added.
The minister, however, admitted that NERC would never allow any tariff that would be punitive against the customers.