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We’ll Review Tariff Every Six Months - NERC Says As It Confirms Removal of Electricity Subsidy

We’ll Review Tariff Every Six Months - NERC Says As It Confirms Removal of Electricity Subsidy (Updated: 2 months ago)


Reports that the federal government quietly removed electricity subsidies have been confirmed.

The Nigerian Electricity Regulatory Commission (NERC) confirmed the news through its Chairman, Sanusi Garba.

In his speech on Wednesday March 16, Garba said the commission played a role in ensuring that tariff rates were regulated.

Garba who revealed that adjustment was made in February following underlying economic considerations, added that tariff adjustment was straightforward and distribution companies are expected to inform their customers of the changes.

He said; 

“Now subsidy is a policy issue determined by the government. The government will decide that the rates calculated or agreed by the regulator may at this time not be passed on to consumers. It has happened many times.

“In the past four, five years the level of subsidy has gradually been reduced, because you cannot run the electricity market on life support and say that investors cannot get their return on investment until government steps in to provide the required funding.

“Now subsidy is a policy issue determined by the government. The government will decide that the rates calculated or agreed by the regulator may at this time not be passed on to consumers. It has happened many times.

“In the past four, five years the level of subsidy has gradually been reduced, because you cannot run the electricity market on life support and say that investors cannot get their return on investment until government steps in to provide the required funding."

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