Power distribution companies will not be allowed to increase electricity tariff as they work to repay the Central Bank of Nigeria’s N213bn facility allocated to operators in the power sector.
The Federal Government recently announced a N213bn facility to assist operators in the sector offset the huge legacy gas debts and amend their revenue shortfall in order to improve investment in the industry.
The Chairman, NERC, Dr. Sam Amadi, said the regulator was never focused on increasing tariff.
He said, “If anything, the regulator wants to keep the tariff lower than it could be. That is why we are a consumer protector. Our mandate in the law is to ensure that the operators are efficient, and when they are efficient, we allow them to charge the price that enables them to recover the reasonable and prudent cost of serving the customer.
“So, from this perspective, our commitment is to make sure that this sector continues to attract the right kind of investment that will lead to more availability and reliability. Apart from having the right price, you need a transparent and reliable regulatory framework to attract investment.
He explained that the CBN fund would help to provide quick money that the power companies would pay with a longer tenor. So, instead of consumers paying the shortfall immediately and within five years, the fund helps power consumers not to pay immediately and to pay for 10 years.