•Govt unfolds new tariff today
INDUSTRIAL and commercial
consumers are to pay more for every
unit of electricity they use. The
Nigerian Electricity Regulatory
Commission (NERC) will unveil a new
tariff regime today, it was learnt
yesterday.

The new regime will be extended to
residential consumers in six months,
the NERC said.

According to its chairman, Dr. Sam
Amadi, the new tariff, “is already well
known to both the Central Bank of
Nigeria (CBN) and the transaction
advisers as well as the participants
from the deposit money banks.”

Amadi broke the news yesterday in
Abuja at the signing of a Memorandum
of Understanding (MoU) between the
CBN and all the Deposit Money Banks
(DMBs) for the N213 billion legacy debt
funding for the power sector.

He, however, assured Nigerians that the
Commission will “ensure that the tariff
is cost-reflective, it will not constitute a
burden on consumers immediately and
so for avoidance of doubt with this
facility, there will be no increase in
electricity tariff for residential
consumers for six months until we
begin to see improvement.”

Essentially, the tariff, Amadi explained
“is guaranteed to come into effect
tomorrow (today) and it allows for full
recovery and ensures that there is no
risk that is not fully covered in this
transaction.”

He said that NERC expected more gas
inflow to the power stations with the
injection of N213 billion.
He said: “This facility and other
interventions in the next two, three,
four months will bring about increase
in capacity, there will be more
reliability and the metering plan that is
ongoing will ensure that consumers will
be much more comfortable as they will
witness increase in power supply.”
The objective of the N213 billion legacy
debt facility was to make the power
sector viable and reliable.

Amadi restated the Commission’s
commitment to cost recovery by both
the CBN and the designated banks in
providing the fund and for other
investors, who may want to invest
either in upstream and downstream of
the power sector.

The funding facility, Amadi stated “is
about viability and with just 4,000
megawatts worth over N500 billion
market, we expect that this facility will
deepen the market and ensure not just
a good business for the banks but also
provide reliable power supply to
Nigerian homes.”

CBN Governor Mr. Godwin Emefiele
said they were “taking this bold step at
this stage to now help the banks, who
are themselves going to act as channels
through which these funds would be
paid to the discos and the GENCOS and
the gas suppliers to come in to also sign
their Memorandum of Understanding
at the Central Bank of Nigeria with the
NERC and CBN.”

Nigerian banks, he said, are
predominantly the creditors in the
books which further demonstrates the
commitment of the banks to continue to
support the growth of the power sector.
Emefiele stated that the N213 billion
power sector intervention fund will
ensure that “the least legacy debts that
we have are cleared so that the market
can be seen to be viable, and electricity
can be begin to be generated and
distribution improved upon for the
good of our people.”

He said that gas tariff was subsequently
reviewed to $2.50 whereas
transportation was improved to 80
cents, increasing the gas tariff to about
$2.80 cents.

Emefiele said the International Oil
Companies (IOCs) the gas suppliers,
have been assured that the present gas
price will be commercially viable.
“Not only that, it will encourage them to
improve on the gas production and
supply but will indeed also encourage
new investors to come into the market
and then we can see a boost in the gas
production industry in Nigeria,” the
CBN chief said.

The post Nigerians to pay more for
electricity appeared first on The
Nation.

Source: http://nigeriannewstoday.com/2014/12/23/nigerians-to-pay-more-for-electricity/

The liberalization of the power sector has caused Nigerians more pains than gain.

I fear..if development hits nigeria with full force we may pay tariff for using tarred roads that is after paying tax.

I don't care. Coz I'm literally not going to pay a dime of it.

Different story hia in kd

Power sector is one of the most corrupt sector in this country.