Govt to increase electricity tariff every year

Nigerians who are complaining about the scheduled June 1 increase in electricity tariff are in for a shocker. This is because the anticipated increment is only the first in a series as the tariff will be raised every year throughout the administration of President Goodluck Jonathan and even beyond.

The Multi-Year-Tariff Order prepared by the Nigerian Electricity Regulatory Commission, which was obtained exclusively by our correspondent in Abuja on Monday, showed that there would be increases in electricity tariff every year till 2016.

The tariff schedule showed that consumers would have to pay higher on two fronts. Every year, the fixed cost will go up. Similarly, the energy cost or cost per kilowatt hour of electricity will also go up.

NERC had consistently said that increase in electricity tariff would be for the short run and that the amount payable by customers would begin to fall when the country had produced enough electricity.

However, the tariff structure produced by NERC showed that the short run would be longer than four years as tariffs would continue to increase until at least 2016.

Responding to a text message by our correspondent, the Executive Chairman, NERC, Dr. Sam Amadi, said he could not predict the time frame when the tariff would begin to take a downward curve.

“I don’t know. It depends on the quantity of power available and the rate at which losses are reduced and efficiency improved,” he said.

 PUNCH NEWSPAPER