Business
NERC Defends Electricity Tariff Hike
The Nigerian Electricity Regulatory Commission (NERC), has said that the planned increase in electricity tariff was to woo more investors to the sector.
Mr Patrick Ayendi, NERC’s Assistant General Manager, Media and Public Relations, disclosed this to newsmen in a telephone interview on Tuesday, in Lagos, recently.
“The increase in tariff is one of the moves to remove the critical barriers to allow for private participation and to put in place an attractive price so that investors can come to Nigeria”.
“Besides, the inflationary rate and the high exchange rate of the naira to the dollar informed the decision”.
“The proposed increment will enhance effective power generation and distribution in the country,” Ayendi said.
According to him, government is running at a loss because it spends about N11.50 to produce per kilo watt an hour of electricity and sells at N 6.50k.
He said that the review of the tariff was being fast-tracked in view of the complaints from stakeholders in the industry.
“By the end of this year, we will have a major review because we have considered all the complaints being made, especially regarding the pricing”.
“And in view of the fact that gas is being supplied in line with the gas to power policy, it means government was operating at a loss so we need to consider that,’’ he said.
Ayendi said that government planned to withdraw all subsidies in 2011 when power generation would have improved substantially.
He, however, urged Nigerians to imbibe the attitude of conserving electricity, adding that, the commission would soon embark on public enlightenment campaign to educate Nigerians on its gains.
“NERC is thinking about operating an energy efficiency project to educate the customers about energy conservation.
“We are also establishing labelling and standards procedure, so that when you are bringing in air-conditioners or refrigerators, they must comply with the standards we have here,” he said.
Commenting on the shortage of pre-paid meters in the country, Ayendi said that there was a company assigned its production and distribution.
He urged Nigerians to be patient as pre-paid meters would eventually go round.