The Ministry of Power, Works and Housing has said an increase in electricity tariff can only be justified by widespread provision of meters and improved service delivery to customers.
The ministry said this in a new document called ‘Power Sector Policy Directives and Timelines,’ which was obtained by our correspondent on Tuesday.
It directed the Nigerian Electricity Regulatory Commission to clearly convey the need for tariff review consistent with provisions of Section 76 of the Electric Power Sector Reform Act 2005, and abide by the requirement for periodic major and minor reviews and processing of valid claims for deficits in tariff as provided for in the rules for tariff regulation.
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The document, which was dated June 2019, said, “Government policy recognises that the current consumer tariff must rise to cover all costs of gas, transmission and distribution. This is necessary for distribution companies to raise capital, and for the industry to be self-sustaining without government financial support.
“But this can only be justified after meters are more widely installed and services improve so that consumers pay for what they consume and not for the inefficiencies of operators. In the meantime, NERC (Nigerian Electricity Regulatory Commission) should enforce regulatory processes already in place for operators to make claims for verified deficits in their tariff.”
Source: Punch Newspaper
