FG To Hike Power Tariff From December, Starts Free Meter Purchase

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Electricity consumers in the country are expected to pay more following plans by the Federal Government to soon review upwards the power tariff in line with the Multi Year Tariff Order (MYTO).

This  is even as the Nigerian Electricity Regulatory Commission (NERC) on Wednesday confirmed  government had commenced the procurement of four million meters for distribution free of charge to unmetered power users nationwide.

The commission, which disclosed that  over 860,000 meters were distributed for free to power users under phase zero of the National Mass Metering Programme (NMMP), also disclosed that about eight million consumers  nationwide had yet to get meters. adding that.

Speaking on the four million free meters being procured for distribution to the unmetered consumers, the Deputy General Manager, Consumer Affairs, NERC, Shittu Shuaibu, said the initiative was coming under the Phase one of the NMMP, which had already started.

The Deputy General Manager, who spoke during a live radio programme monitored in Abuja, said the Meter Asset Providers, working with the distribution companies, had been able to deploy about 860,000 meters under phase zero of the mass metering programme.

He said, “The programme is supposed to run in three phases which include phase zero, phase one and phase two. Phase zero was rounded up around the end of October. Phase one has actually commenced and it is another government intervention of about four million meters.

“So far we have deployed about 860,000 or close to 900,000 meters, which were part of the one million meters that was procured as part of government intervention. For the four million meters, the procurement process has commenced.”

According to him, the mass metering intervention is not totally cost free since the government is giving out loans for the provision of these meters to consumers

Shuaibu explained that the power distribution companies (DisCos) would be part of the loans and were to refund it over a period of 10 years at a single interest rate through the Central Bank of Nigeria.

The NERC had in a notice on the review of transmission loss factor in MYTO notified the public and industry stakeholders of the commission’s intention to commence two key reviews. These include, the Extraordinary Review of Transmission Company of Nigeria’s Loss Factor (TLF) in the MYTO, and the processes for the December 2021 review of MYTO – 2021.

The commission further clarified that the December 2021 MYTO review was to consider changes in relevant macroeconomic indices, the nation’s power generation capacity and capital expenditure required for evacuation and distribution of the available generated electiricity in compliance with extant rules.

It explained that pursuant to the provisions of the Electric Power Sector Reform Act, the NERC adopted the MYTO methodology in setting out the basis and procedures for reviewing electricity tariffs in the country.

According to the industry regulator, the methodology provides for minor reviews every six months, major reviews every five years, and extraordinary tariff reviews in instances where industry parameters have changed from those used in the operating tariffs.

This change  usually makes review inevitable in order to assure industry viability.

The NERC also expressed its readiness to receive inputs from power sector stakeholders and the general public within 21 days from the date of the notice, which was issued on November 16, 2021.

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