FG extends suspension of electricity tariffs by another one week

The Federal Government has extended suspension of electricity tariffs by another one week.

The decision was taken on Sunday in Abuja at the resumed negotiation between the Federal Government and Labour.

The negotiation committee is scheduled to meet over the next 60-90 days to resolve other outstanding issues.

The revised Terms of Reference (ToR) for the second phase includes review inputs to the MYTO model and ensure the assumptions and factors for the model are correct and accurate. This will also include clarifications on the reasons for variance in electricity tariff across distribution companies (DISCOs).

The committee would visit all 11 DISCOs and a review will be done on the implementation of the Service Based Tariff with a view to ensuring consumers are not overcharged, placed in wrong bands or not granted hours of electricity committed by the DISCOs.

The monitoring and evaluation mechanisms set up by NERC and the DISCOs would equally be reviewed.

Also slated for review are the mechanisms for pricing the Domestic Supply Obligation (DSO) and the foreign exchange component(s).

The committee shall explore ways to accelerate investment and bring more players into the sector, drive investment and reduce costs for end-users.

The committee would investigate and recommend ways for the electricity Sector to receive incentives that will reduce costs acsoss the value chain that will benefit the end user.

Membership of the technical committee as agreed on 28th September 2020 will be maintained for the second phase and will leverage independent technical experts as needed to expedite inquiries and solution identification.

During the interim period, the committee will conduct hearings in each DISCO area to further engage and sensitize the public.

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