Electricity tariff reversal would cost N575bn – NERC

Tony Akah NERC

The  Acting chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr. Anthony Akah while at a public hearing organised by the Senate Joint Committee on Labour, Productivity and Power at the National Assembly, explained  that if the commission had not effected the tariff increase on electricity in February, it would have led to the total collapse of electricity supply in the country, National Mirror reports.

He also disclosed that failure to have effected the 45 per cent tariff increase would have resulted in a monthly loss of N44 billion or N575bn yearly to the sector. He also explained reasons the commission could not revoke the new tariff. Akah said there is nowhere in the world where such increments are reverted after being operational, stressing that the non-reversal is in line with global best practice.

Besides, he explained that the increment was approved when the board of the commission had not yet been dissolved by the Federal Government, noting that it is only the full complements of the board that could effect any changes in the new tariff. Akah also stated that his commission was buoyed into implementing the tariff increment following a court action instituted by the six GENCOs who insisted that the increment must go on.