The FG has agreed to provide a tariff relief of N10.20kobo per kilowatt of electricity for Nigerians for the next three months and also distribute six million free meters to electricity consumers.
The ad-hoc committee set up by the Federal Government and organised labour last month has agreed to adopt a two-phase approach to proffer solutions to resolve issues in the sector on a medium-term basis.
This agreement came after a lengthy meeting between Labour and the Federal Government on Sunday evening following the expiration of the 2-week suspension of the increased electricity tariff yesterday.
Labour unions had on 28th of September suspended its planned industrial action after the Federal Government suspended the tariff increase pending the outcome of their negotiation.
A communiqué to this effect was made available by the Minister of State for Labour and Employment, Festus Keyamo on his social media handle, adding that the Federal Government will use VAT proceeds to temporarily subsidize tariffs while the ad-hoc committee will work for two more months to resolve other issues regarding tariff adjustments.
It was disclosed that the committee adopted a two-phase approach to proffer solutions which would help resolve issues affecting the electricity sector in the medium term, whilst providing relief to customers immediately.
They stated that the immediate relief would be provided to citizens for a 2 to 3-month period (which will not exceed December 31, 2020), saying it will be the timeline for the conclusion of an extended scope of work for the Technical Committee.
According to the communiqué; “Following extensive analyses, it was realised that VAT proceeds from the Nigeria Electricity Supply Industry (NESI) could be used to secure varying levels of relief in customer tariffs across bands A, B and C, ensuring that all customers receive some form of relief during this difficult time.
“Cumulatively the per kWh relief that will be provided to customers in bands A, B and C is N10.20 per kilowatt hour (kWh), which will be distributed across the bands. The relief will be in place for the 2 to 3-month period required for the Technical Committee to conclude its extended scope of work. It should be noted that Bands D and E tariffs were not changed, and this freeze will remain in place.”
It also disclosed the acceleration of National Mass Metering Programme (NMMP), stating that the programme will distribute 6 million meters to Nigerians free, off charge.
“The Central Bank of Nigeria (CBN) having approved the funding for this programme, the meters will begin being distributed to consumers immediately using stockpiles in country and local assemblers. The cost of meters shall be recovered from the DISCOs.
“The 6 million meters to be procured for the NMMP will only be through local meter manufacturers and assemblers. This will create jobs and a new meter manufacturing sub-sector in the country.”
According to the Minister, other immediate reliefs include salary protection for electricity workers, a mandatory refund for any overbilling during system transition by the discos, monthly publication by NERC of allowed billing of unmetered customers, etc.
The committee also agreed on the freezing of customer band migration during the interim period; “In order to protect customers from changes in tariff during the 2-3 month period of review by the Joint Technical Committee, DISCOs will be directed to temporarily suspend customer band migration.
“This means that while DISCOs are expected to fulfil their Performance Improvement Plans (PIP) thereby improving the quality of service to customers, no added charges will be passed on to customers during this period. This measure is aimed at building confidence in the Service Based Tariff structure,” they stated.
