The Minister of Power, Sale Mamman who reacted to the
Nigerian Electricity Regulatory Commission (NERC) statement which confirmed
that the plan to increase electricity tariff from April 1 has been postponed,
has stated that the plan won't still take off unless Distribution Companies
(DisCos) improve the quality of supply, meter consumers and agree on rates with
consumers.
Mamman stated though the implementation of the new tariff
plan was delayed for the next three months as palliative measures against
Coronavirus, DisCos which fail to improve its supply will be sanctioned.
The Minister added that the Ministry he heads is supportive
of a “service reflective” tariff system which is more equitable and will
encourage investment in the sector.
Read the full statement below;
COVID-19; Minister’s Statement on Tariffs and Palliative
measures for the Power Sector.
As part of the Federal Government efforts to ameliorate the
current challenges occasioned by the ravaging COVID – 19 pandemic, The Nigerian
Electricity Regulatory Commission today issued an Order that included a 3-month
delay in the implementation of tariff measures.
The 3-month delay in the implementation of tariff measures
is consistent with His Excellency the President’s announcement on March 29th
granting a moratorium for certain Federal Government funded facilities to the
Nigerian Public.
There will be no tariff action in APRIL. Thereafter, tariffs
will only be raised as the Distribution Companies (DISCOs) improve quality of
supply, meter consumers and agree with consumers on rates. DISCOs that fail to
improve will be sanctioned. This is based on the outcome of the public hearings
on tariffs. The Ministry is supportive of a “service reflective” tariff system
which is more equitable and will encourage investment in the sector. The
Ministry will work with NERC to ensure that improvements happen in the entire
DISCO network and estimated billing is capped per NERC Order 197/2020. This
will eliminate arbitrary billing that Nigerians have raised issues with.
We are also implementing other key emergency measures to
support the NESI (Nigerian Electricity Supply Industry). We are working with
the CBN to ensure payments to the generators and gas suppliers through the
Payment Assurance Facility (PAF) are expedited to support power supply. TCN is
also creating emergency measures to ensure staff will be available to monitor
the grid and perform technical interventions.
These changes and emergency measures will have an impact on
Government finances. The Power Sector Recovery (PSRP) Financing Plan is being
updated to reflect the changes. The Financing Plan will help support ongoing
discussions with the World Bank on financial support for the sector and the
transition away from tariff support as Government optimises its resources.
During this difficult time the President has instructed that
critical infrastructure projects and programs for the poor and underserved be
continued. The Ministry will continue to
implement key infrastructure programs such as the
Siemens/Presidential Power Initiative (PPI). The Ministry through TCN will also
continue the Transmission Rehabilitation and Expansion Program in partnership
with the World Bank, African Development Bank, AfD, JICA and other key
development partners. To support the underserved and citizens without access in
this difficult time, the Ministry will accelerate programs with the Rural
Electrification Agency (REA) focusing on Solar Home Systems and Solar
Mini-Grids that impact the poor. These programs continue to be supported by the
World Bank, African Development Bank, USAID, DFID and other key development
partners. The Ministry is also in discussions with the Central Bank to provide
financing to accelerate Solar Off-Grid programs with the REA.
The Ministry will engage with key NESI players in this
difficult time to ensure sustainability of supply.
I commend players in the NESI that have made commitments to
ensuring stable power supply in this period. Thank you to all the industry
players for this patriotic stand. Indeed, times like these demands nothing
less.
I am assuring Nigerians that the priority of this government
as directed by President Muhammadu Buhari is to provide support for all
citizens as we battle the global pandemic.
Engr. Sale Mamman
Honourable Minister of Power
31/03/2020
