News: Nigerian government reduces electricity tariff by 50%

The Nigerian government has announced a
reduction in electricity tariffs by 50%.
The Nigerian Electricity Regulatory Commission today
announced the immediate review of electricity tariffs by
about 50 per cent.
The Chairman of the Commission, Sam Amadi, who
announced the review in Abuja, said the reduction, which
takes effect from the end of March, followed the regulatory
agency’s decision to remove collection losses from
customer tariff under the multi-year tariff order.
Mr. Amadi said following the approval of the multi-year
tariff order, MYTO 2.1 in January 1, 2015, the Commission
had received several complaints and petitions against the
decision, which resulted in astronomical increases in tariff
across the different consumer categories.
He noted particularly the petition by industrial and
commercial consumers under the auspices of the
Manufacturers Association of Nigeria, which demanded a
drastic reduction of their tariffs.
The two categories of consumers had cited the negative
impact of their increased tariffs, which they said were
threatening their businesses, leading to massive job losses.
Following the review of the petitions, Mr. Amadi said the
Commission conducted public hearings to gather evidence
from all consumer classes on the affordability of the new
tariff.
Again, he said the Commission had consulted with the Chief
Executive Officers of the Distribution Companies before
deciding to intervene by reviewing the tariffs.
Besides, the Chairman said the Commission also decided to
review the technical and financial assumptions of multi-
year tariff order 2.1.
The reviews, he noted, were in line with the provisions of the
Electricity Power Sector Reform Act 2005 and the Business
Rules of the Commission’s mandate, which allow such a
decision on a petition by an interested party within 60 days.
He said findings from the various reviews showed that the
major cause of the spiralling consumer tariffs was the huge
aggregate technical commercial and collection losses.
Some distribution companies have complained that the
collection losses, which are passed to consumers, raised
the final tariffs by as much as an average of 80 and 103 per
cent.
“The Commission has been listening to consumers’
complaints and taking full account of the impact of the high
tariff on consumers and the Nigerian economy,” Mr. Amadi
said.
“Therefore, the Commission has reviewed the basis of the
MYTO 2.1 assumptions and has determined that it is
inappropriate to transfer to consumers collection losses
that are controllable by the DISCOs (distribution
companies),” he announced. CLICK HERE TO READ FULL AND TOUCHING NIGERIAN CELEBRITIES BIOGRAPHY AND SCANDALS

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