You will pay more for electricity in lockdown season

Beginning Wednesday, April 1, 2020, Nigerians will pay more for electricity, amid restriction of movement in most states as part of measures to curb the spread of the novel coronavirus (Covid-19) pandemic.

In December, the Nigerian Electricity Regulatory Commission (NERC) disclosed that the hike in tariff will kick off in April of 2020 in accordance with its 2019 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2020.

A top source at Ikeja Electric tells Punch that the firm had not received any directive from NERC to halt the planned hike.

He said, “According to the tariff order for the year, we are supposed to increase on April 1, 2020. So far, we have not received any directive not to go ahead.”

NERC says the new electricity rates will be cost-reflective.

Electricity providers have been complaining about running at a loss because current rates are inadequate to keep them in business.

Let's revisit that NERC directive

The NERC directive had read as follows, “The federal government’s updated Power Sector Recovery Programme does not envisage an immediate increase in end-user tariffs until April 1, 2020, and a transition to full cost reflectivity by end of 2021.

“In the interim, the federal government has committed to funding the revenue gap arising from the difference between cost-reflective tariffs determined by the commission and the actual end-user tariffs payable by customers.

“Effectively, this order places a freeze on the tariffs of the TCN and administrative charges until April 2020 at the rates applied in generating MO invoices for the period of January to October 2019.”

Nigeria distributes a meager 4,000mw of electricity to homes and businesses at the best of times.

Public power supply in Africa’s most populous nation is perennially erratic or unavailable.