At the Nigerian Electricity Supply Industry (NESI) Conference in Abuja, Stakeholders emphasized the need for a Cost-reflective Tariff in the Power Sector.
The discussion was prompted by the Nigerian Electricity Regulatory Commission’s (NERC) decision to defer a planned Increase in Electricity Tariffs.
Rahila Thomas, the Country Director of Energy Market and Rates Consultant Limited (EMRC), highlighted the necessity for regular Tariff reviews in light of Inflation, Forex fluctuations, and other critical Variables.
According to Thomas, the Government’s reluctance to Implement a Tariff review has resulted in Substantial Subsidies, with N3.34 trillion allocated and N2.8 trillion already Disbursed.
Kukuruku News reported that in the first half of 2023, the Government and end Users spent approximately N686.18 billion on Subsidies or Bill payments.
Despite this, the Electricity supply remains Inadequate, failing to reach the expected daily load offtake of 5,000 Megawatts.
During the Conference, President Bola Tinubu’s representative, Sodiq Wanka, underlined the need for a Cost-reflective Tariff, acknowledging the Sector’s underperformance and Chronic Underinvestment in Transmission and distribution.
Sani Bello, Chairman of Mainstream Energy Solutions Limited, expressed concerns about the liquidity Crisis created by the absence of a Cost-reflective Tariff, calling for strengthened Laws to combat energy theft and Non-payment of Electricity bills.
Additionally, Stakeholders raised alarm over the significant number of Unmetered Customers in the Country, estimated at over seven million by NERC.
Chantelle Abdul, Chairman/CEO of Mojec Meters Limited, estimated that Nigeria would require approximately N1.5 billion to bridge the existing Metering gap, emphasizing the need for a Cost-reflective Tariff and appropriate Meter pricing.
Ikeja Electric announced an Extension of the deadline for Customers to link their National Identity Number (NIN) and Standard Transfer Specification (STS) Meters, allowing more time for compliance.
The Initial deadline of November 1, 2023, was extended to November 15, 2023, ensuring that Customers can continue to access energy units through their STS Meters.
