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FG reduces electricity tariff by 50%
The Nigerian Electricity Regulatory Commission, NERC, has reduced electricity tariff by 50 per cent. This is as a result of complaints by consumers over excessive charges and the payment for services not given. In February, the Steel Manufacturers warned that the new tariff will mean loss of jobs as the tariff has taken what would have been the slim margin in the business. The Manufacturers association which is the umbrella body also made a strong case for reduction of tariff if government wants business to survive.
The Chairman of NERC, Sam Amadi said on Tuesday that the DISCOs should stop passing their losses to the consumers. ‘It is clear that removal of the collective losses will lead to lower tariffs for consumers. The removal of collective from consumer tariff has reduced tariff by more than 50 per cent in some places. Please note that the reduction does not affect the Central Bank of Nigeria, CBN facility and its repayment,’ he said.
He further stated that ‘ NERC remains committed to the principle of cost- reflective pricing and to the development of an efficient and financially viable electricity market. These are important to support the investment that is needed to ensure the electricity supply industry meets the needs of the Nigerian economy.