Yusuf Ali, N.E.R.C’s Commissioner for Planning Research and Strategy, addressed what prompted the immediate implementation of the new electricity tariff. The Nigerian Electricity Regulatory Commission (N.E.R.C) implemented a tariff increase on April 3, 2024, affecting customers receiving 20 hours of daily power, classified under Band A. The new rate of N225 per kilowatt-hour marks a significant jump from the previous N66, eliciting widespread criticism due to its immediate imposition amidst economic challenges.
Yusuf acknowledged public discontent but emphasized the necessity of the tariff review, explaining that it applies to only 15% of customers. Ali highlighted the escalating costs of gas, indexed to the dollar, which heavily influence electricity production expenses.
Criticism surged due to the abrupt tariff hike, lacking forewarning, and deviating from standard procedural practices, sparking discontent.
Ali staunchly defended the swift implementation, citing N.E.R.C’s regulatory framework and its delineation of review categories. He emphasized the necessity of distinguishing between minor, major, and extraordinary reviews, as stipulated by regulatory guidelines. The government’s decision to curtail subsidies was highlighted, with Ali urging consumers to embrace cost-reflective tariffs in light of economic constraints.
Despite outcry, Ali maintained the urgency of aligning tariffs with actual costs to sustainably manage resources and infrastructure. He stressed the imperative of adapting to market realities, suggesting that gradual adjustments could mitigate consumer impact over time. Ali underscored the importance of public understanding and cooperation in navigating the transition towards sustainable energy pricing structures. In conclusion, Ali’s defense rested on regulatory frameworks and economic imperatives, urging a pragmatic approach towards tariff adjustments.
Concerns arose regarding service quality and compliance monitoring, particularly regarding discrepancies between allocated hours and actual power supply. Ali detailed N.E.R.C’s monitoring mechanisms, highlighting the installation of smart meters on feeders for real-time data collection. These measures aim to ensure transparency and accountability in service delivery, addressing consumer grievances and industry standards.
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