USA Africa Dialogue Series - CBN's N213bn Credit: Power DISCOs not Allowed to Increase Electricity Tariff ...

CBN's N213bn Credit: Power DISCOs not Allowed to Increase Electricity Tariff ...
The Punch


The Nigerian Electricity Regulatory Commission, in a statement has said that Power distribution companies will not be allowed to increase electricity tariff as they work to repay the Central Bank of Nigeria's N213bn facility earmarked for operators in the power sector.

According to Punch, NERC Chairman, Dr. Sam Amadi, said the regulator was never focused on increasing tariff.

"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.

"This means that we must religiously follow our price methodology, except where it will work gross injustice or distress to consumers. The methodology requires us to review the pricing of electricity upon the occurrence of certain events."

He explained that the CBN fund would help to provide quick money that the power companies would pay with a longer tenor.

The NERC boss said, "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.

#Punch

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