Minister of Power, Engr. Sale Mamman says instead of significant hike in electricity tariff, Nigerians should expect increased efficiency in the sector.
The minister said this in a statement, which came amidst reports of possible major increase electricity tariff.
Mamman said the order issued by NERC on the 26th of April 2021 titled “Notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies” was a routine procedure.
“The tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains subsidized in line with the policy direction of the Federal Government.
“The Multi-Year Tariff Order (MYTO) per NERC’s regulation obtains inputs from operators in the market every 6 months to perform minor reviews and a major review is required every 5 years. Thus, as in January, a minor review will occur in June. Given the timing for the Extraordinary review has also elapsed, a review will occur for consideration in January 2021,’ the statement said.
Mamman said the present administration remained faithful to the adopted resolutions from the Joint FGN-NLC/TUC Technical Committee on Electricity Tariffs which recommended for “NERC to conduct an extraordinary review of the MYTO to further review factors and align them with current evolving realities.”