ICYMI: Electricity Tariff Increase Suspended For Two Weeks

ICYMI: Electricity Tariff Increase Suspended For Two Weeks
NERC has affirmed two weeks suspension for new electricity tariff
News Rain reports that Nigeria Electricity Regulatory Commission on Tuesday reinstated that the Federal Government approved just two weeks for the suspension over the new increment of the electricity tariff.

Electricity Tariff Increase Suspended

Recall that the recent increment of the electricity tariff, Petro pump price, and other essential commodities are part of the main reasons for the recently agitated nationwide strike action by the leadership of the Labour Union.
The Labour Union who had given a standing order, by calling on the Federal Government to reverse its decision on the increment of the electricity tariff, VAT, and Petro price to averted the proposed nationwide strike action,  which as at early hours of Monday after overnight meeting on the proposed nationwide strike action by the Labour Union, and the Federal Government resulted in the Federal Government soft-pedal on its decision on the electricity tariff, and this led to the cancellation of the nationwide strike by the Labour Union leadership.
According to Nigerian Electricity Regulatory Commission (NERC) on Tuesday, through a signed statement by the NERC Chairman, James Momoh, and Commissioner Legal, Licensing and Compliance, Dafe Akpeneye stated that the statement was issued to notifies all Nigerians that the suspension of the said electricity tariff is for just two weeks.
NERC directed electricity distribution companies to suspend the new increase of electricity tariff for the period of just two weeks only, with the effect from 28th September 2020 to 11th of October 2020.
The Order further stated as thus: “The Commission, pursuant to sections 32 and 76 of the Electric Power Sector Reform Act (“EPSRA”), issued the Multi-Year Tariff Order 2020 for the 11 successor electricity distribution companies (“DisCos”) with effect from 1 September 2020. One of the primary objectives of the MYTO 2020 Order is ensuring that rates charged by DisCos are fair to customers and are sufficient to allow DisCos that operate efficiently to recover the full cost of their activities, including a reasonable return on the capital invested in the business.
The statement further stated that following a joint communique issued by the Federal Government of Nigeria and the labour unions, the FGN agreed that the recent review in electricity tariffs would be suspended by the Commission for a period of 14 days to further consultations and finalization of negotiations between the parties.
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“Section 33 of EPSRA provides that “the Minister may issue general policy directions to the Commission on matters concerning electricity, including directions on overall system planning and coordination, which the Commission TORY shall take into consideration in discharging its functions under section 32(2), provided that such directions are not on conflict with this Act or the Constitution of the Federal Republic of Nigeria.
The commission through the updates ordered the suspension of the Multi-Year Tariff Order issued to the DisCos “for a period of 14-days, with effect from 28 September 2020 to 11 October 2020”.
The concluded part of the statement confirmed that the Secretary to the Government of the Federation, Minister of Power, and other Ministers were part of the FGN team that issued the communique which the Commission duly accepts as a general policy direction in accordance with section 33 of EPSRA”.
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