NERC insists on yearly increase of electricity tariff

The Nigerian Electricity Regulatory Commission has said there is no going back on the yearly increase in electricity tariff as envisaged by the Multi Year Tariff Order despite the inability of the power system managers to add to the current grossly inadequate supply.

The commission said all industry participants were carried along before the tariff order was arrived at.

The Deputy General Manager, Market Competition and Rates, NERC, Dr. Haliru Dikko, said this at a stakeholders’ forum organised by the NERC in Abuja on Thursday.

He said, “The question of going back on the MYTO does not arise, considering that all industry participants and the general public were carried along during the exercise and the data used was as close to accurate as it can be.

“The problem in the sector as it is today is not the MYTO but other issues hindering the progress of the market. Such issues include lack of adequate commitment by the operators, lack of funding and other associated problems.”

Dikko said prior to the introduction of the MYTO 1 in 2008, the commission alongside operators in the sector made projections on the power generation capacity.

The projections, he said, were based on the data received from the Power Holding Company of Nigeria’s successor generation companies, some licensed Independent Power Producers and the Nigeria IPP.

The NERC, he said, had projected that the country would generate 4,000MW in 2008; 6,000MW in 2009; 10,000MW in 2010; 15,000MW in 2011; and 18,000MW in 2012.

“However, these projections were never realised due to delays associated with the execution of some projects as well as lack of adequate commitment by some licensees to ensure the achievement of these projections,” Dikko said.

Instead, he said electricity generation in the country was over 14,000MW below the projected figure of 18,000MW for 2012, but that only about 3,800MW was being currently generated.

Also at the forum, civil society groups outlined conditions to be met by the Federal Government before they would support the ongoing power sector reform.

According to them, the reform must ensure adequate, affordable and regular power supply before the government will get their support.

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