FG Reduces Electricity Tariff by 50%

The federal government has announced the reduction of electricity tariff by over 50% in some areas of the country.

According to Vanguard, The Chairman of Nigeria Electricity Regulatory Commission (NERC), Sam Amadi, announced the news yesterday in Abuja.

Amadi however noted that the reduction does not affect the Central Bank of Nigeria, CBN, facility and its payment of the tariff.

He further revealed that the decision to implement the reduction stemmed from consumers’ complaints of high electricity tariff and its adverse impact on the nation’s economy.

“The Commission has been listening to consumers and taking full account of the impact of high tariff on consumers and the Nigerian economy, has therefore reviewed the basis of the MYTO 2.1 assumptions and has determined that it is inappropriate to transfer to consumers collection losses that are controllable by DISCOs.

It is the responsibility of the DISCOs to collect their revenue from their customers. Failure to do so should not be a penalty to customers who pay their bills. It is clear that removing the collection losses will lead to lower tariffs for consumers.

Therefore, On Monday, March 9, 2015 the Nigerian Electricity Regulatory Commission (NERC) issued a new order to the effect that henceforth collection loss, which is defined as the ‘amount billed but not collected’, will not be automatically passed on to consumers of electricity,” he said.