FG To Increase Power Tariff, Starts Meter Purchase

Consumers of power across the country may begin to pay even more money for electricity usage, after plans by the Federal Government to conduct a review of the power tariff in the country.

On Wednesday, the Federal Government of Nigeria said that it had begun the acquisition of four million meters, which are to be distributed to power users without meters across the country.

The FG also announced that the total number of users without meters across the entire country currently sits at about eight million, with over 860,000 meters distributed to power users free of charge during phase zero of the National Mass Metering Programme (NMMP).

The Punch stated that news went round on Wednesday, saying that the Nigerian Electricity Regulatory Commission (NERC) would re-evaluate the nation’s power tariffs next month, as long as there are no unforeseen circumstances hindering the plan.

The Deputy General Manager of Consumer Affairs in the NERC, Shittu Shuaibu explained the procurement of the four million free meters as the first phase of the NMMP which had already begun. Shuaibu explained on a live radio programme in Abuja that the Meter Asset Providers worked with the distribution companies to provide more than 860,000 free meters under the mass metering programme’s phase zero.

Shuaibu explained that the programme will run across three phrases: phase zero, phase one and phase two. Phase zero involved giving 860,000 meters to users for free, while phase one – which has recently commenced – involves giving four million meters to users free of charge. For phase zero, one million meters were actually procured but so far, only about 900,000 have been distributed to consumers.

This mass metering programme is however not free, as it was revealed that the government was providing loans for the provision of the meters to Nigerians.

The NERC informed the general public and important stakeholders of the commission’s plans to conduct two highly important reviews. The reviews include the Extraordinary Review of Transmission Company of Nigeria’s Loss Factor in the Multi Year Tariff order (MYTO), and the processes for the December 2021 review of MYTO 2021.

It said that the December MYTO review was to examine changes in the economic factors, as well as generation and capital needed for distribution.