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Nigeria, Are You Ready For Increased Electricity Tariff? New Tariff to Take Effect in June 2012

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With effect from June 1, 2012, electricity tariff across Nigeria would be increased.

The 36 state governors have given their backing to the Nigerian Energy Regulatory Commission to increase electricity tariff. This decision was taken yesterday at the meeting of the National Economic Council at the Presidential Villa in Abuja.

The council, chaired by Vice President Namadi Sambo includes the 36 state governors, Governor of the Central Bank of Nigeria, ministers of Finance, National Planning and Justice.

Liyel Imoke, Governor of Cross Rivers state while briefing state house correspondents after the meeting said the governors decided to back the planned tariff increase after listening to a presentation by the chairman of NERC, Dr. Sam Amadi. He said the joy in the new tariff plan was that there would be marginal or no increase in tariff for the poor who consume little quantity of power.

He added that even with the increase, electricity tariff in Nigeria would be lower than in some neighbouring countries like Ghana and Chad. He disclosed that N50bn had already been included in the 2012 budget to subsidise power for those who could not afford to pay for the next two years. Another major feature of the plan, according to him, is that there will be free full metering of all customers between 12 and 16 months to ensure that every customer is billed according to use.

The governor said the NERC had been charged to thoroughly monitor the exercise in order to ensure its efficiency so that Nigerians would not be paying for inefficiency.

This news coming at a time when Nigerians are still groaning under epileptic electricity supply hasn’t been taken well by most of the citizens. The governor did not say anything about improved electricity supply coming along with the increased tariff which is what most Nigerians are interested in. It wouldn’t be a good thing if electricity tariff across the country is increased and there is no relative improvement in electric supply.

So, what do you think? Are you ready for the increased tariff? Is increasing the electricity tariff a right step towards improving electric supply? What can be done to improve electric supply in Nigeria?

Please share your thougths.

News Source: Punch

Adeola Adeyemo is a graduate of Industrial Relations and Personnel Management from University of Lagos. However, her passion is writing and she worked as a reporter with NEXT Newspaper. She believes that anything can be written about; anything can be a story depending on the angle it is seen from and the writer's imagination. When she is not writing news or feature articles, she slips into her fantasies and creates interesting fiction pieces. She blogs at www.deolascope.blogspot.com

34 Comments

  1. debbie egwuogu

    May 11, 2012 at 9:00 am

    Its the metering part that is my concern because my meter has been stolen for over five years,asked for anoda,dem no gri bring am but they keep bringing outrageous bills for light wey I no see… I hope this works out well,no be say dem go dey siddon dey promise things but no light!

  2. Acee

    May 11, 2012 at 9:19 am

    It take effects from June 2012, but only yesterday i recieved my monthly of
    N9,500 as against the usual N5000 i pay monthly, power did not increase in the last month. So with the increase in June, how much would i pay monthly?Would power increase?

  3. willis id

    May 11, 2012 at 9:42 am

    i am ready to pay any amount if the the light is stable, with the card meter i can control my usage by switching off any appliances that i am not using, infact it will make electricity more available to all because wastage will reduce.

  4. Ready

    May 11, 2012 at 10:05 am

    I suggest everyone goes to get the prepaid meter; it ensures that you recharge according to how much you consume, and it’s N25,000. If you recharge N5,000 each month and aren’t home or barely use it, your money will still be there.
    Secondly, Nigerians grossly underpay for electricity as it is. We are paying about N6 per KWH which is far below the production cost of N11, and even the collection of that N6 is so inefficient. The value of power generated purchased annually is N129 billion, and funds collected is N50 billion so we’re losing N79 billion due to non-collection. Basically, not only are many people and companies not paying as they should without sanctions, electricity similar to other energy sources in Nigeria is grossly subsidized.
    Also, funds lost due to technical and non-technical issues is N57 billion. It appears that if we upped our tariffs and became more effective at tariff collection, then we would have funds to maximize generation and maintenance, before we even begin to think about constructing more power plants which are so capital intensive.
    The 2008-2012 Multi Year Tariff Order was based on bad facts….truth is, our power sector is messed up, and this increase may be badly timed, but if we continue to pay the low subsidized price we are paying, this whole privatization of PHCN won’t happen because no company wants to sell a good at below production cost point…hell, no government should do that. The difference won’t be huge, especially if you get the prepaid meter and become more efficient about power usage. Turn off lights and appliances you’re not using…and that’s my 2 kobo as a concerned citizen.

    • Itoro Umoren

      May 11, 2012 at 12:15 pm

      Spot-on brother, thanks.

    • jonz

      May 11, 2012 at 10:38 pm

      “we grossly underpay for electricity”..what electricity?

  5. Princess zee

    May 11, 2012 at 10:09 am

    This country is just messed up, cant wait for Goodluck’s administration to be over… they are out to make us even more miserable. What happened to the millions injected into the power sector? Am glad we hardly pay phcn bills in ma house,been bypassing for a while now, they want to cheat us, we’ll keep cheating them too. Nonsense

    • mike

      May 11, 2012 at 11:16 am

      nice

    • Ngozi

      May 11, 2012 at 4:06 pm

      Lol!!!!!!!!!!!!!!!! Carry go jare!!

  6. Abigail Usani

    May 11, 2012 at 10:10 am

    If this increase in tarrif will favour the masses,why not? Wen,we……n r we goin 2 hv steady light in 9ja.y alwayz dis beatin about d bush?

  7. Mary Usani

    May 11, 2012 at 10:14 am

    If this increase in tarrif will favour the masses,why not? Wen,we……n r we goin 2 hv steady light in 9ja.y alwayz dis beatin about d bush?
    :@

  8. chinco

    May 11, 2012 at 10:30 am

    They should just let everyone go on prepaid and increase power supply. I think this is the worst administration iv witnessed since my birth. Things have never been so bad, 9ja has never been sooo insecure. The president has proven his incompetence in so many ways. If this was another country, there would be a motion 4 his impeachment. Its soo sad!

    • Princess zee

      May 11, 2012 at 11:29 am

      i agree with you

  9. Loveth

    May 11, 2012 at 10:36 am

    My bill last month was 4X the regular amount so yeaahhh either they already increased or its going to be insanity when they do.

  10. Inori

    May 11, 2012 at 10:54 am

    This is typical Nigerian nonsense what he said is utter rubbish ,how will they subsidize for the poor ? we are talking about improved power supply.I thought they were to sell /partner with a Canadian firm ? but no it wont any allowance for looting and chopping money.This is what happens when you have idiots and sycophants in power

  11. christy

    May 11, 2012 at 11:04 am

    Story,story huh?

  12. OA

    May 11, 2012 at 11:17 am

    Sincerity is my major concern. Who are the those that can not afford, that N50B was included in the 2012 budget as subsidy? Can we ensure we have a law at least converting the fixed service charge to a percentage of your consumption. If truely care, it is not subsidy for a selected group that we need. The true Nigerians are not evenn asking for a pay rise, but a rational to defend the first class and third class citezenship created by our political class that at the fedral level mop up over 20% (senate and House) and at the state level, could be as high as 90%. God will certainly help us once we can decide to be sincere.

  13. soultex

    May 11, 2012 at 11:34 am

    It’s had to understand what our “BIG MEN” in the HOUSE are doing. No light for the masses, inefficient transformers installed where they are not staying, overloaded transformers, PHCN staffs not going around checking and effecting corrective measures for fault only waiting to do business when you report, etc, yet the interest is in increasing the tariff. I do know that “Good Business Outfit” ensures quality services to customers before strategising for profit. This not the same for PHCN, profit first before rendering services to consumers if at all good. PHCN should look at their operations first before overcharging the masses. Our Governors do not pay PHCN bills perhaps others bills, so I don’t think they understand what it means to have unsteady light for two weeks in a month and then you are charge N5,000. I still believe they can do well than this.

  14. ayo

    May 11, 2012 at 11:43 am

    You people have come again, saying ghana & chad are paying more than nigeria. But have you considered the fact that they have constant light & we don’t? I’m sure nigerians are ready to pay any amount as long as the light is constant

  15. Tope

    May 11, 2012 at 11:44 am

    The problem we’ve in this country is that we insincerity with what so ever we do. For instance, the prepaid matre is available in some parts of the country while some were still billed, in the former there can’t be partiallity since you’re paying for your comsuption but in the latter ‘serving bills every months’ you’ll discover u’re paying more than your comsuption. Insincerity comes in the sence that, the recharge maters are made available to the upper classes living in GRAs while masses are being tapped, for anytime you failed to pay, you’ll be disconnected and also pay re-connection fee in which no PHCN staff will show up to connect the supply unless you call the electricians. Increasing the tariff is no problem but ‘recharge metres’ should be made available to all as to ensure that people pay for only what they use, if not the outcome of the increament will cause lots problem

  16. Tiki

    May 11, 2012 at 11:59 am

    Choi, I thought my country had it bad! How can you increase electricity tariffs for people who enjoy an average of 21 hours of electricity a week? And that’s in the posh areas! Plus, won’t higher electricity tariffs mean more reliance on generators and more fuel consumption, thereby further lining the pockets of those who are behind the failure of the electricity supply network in Nigeria?
    Gosh, something is wrong in that country.

  17. EMEKA PATRICK

    May 11, 2012 at 12:04 pm

    I THINK WHAT WE SHOULD BE TALKING ABOUT NOW IS HOW TO HAVE A SUSTAINABLE POWER SUPPLY,CAPABLE OF ATTRACTING INVESTMENT SO THAT THE PROBLEM OF UNEMPLOYMENT WILL BE REDUCED TO THE BEAR-EST MINIMUM. WHEN THIS IS ACHIEVED THE MASSES WILL HAVE THE MONEY TO PAY FOR ANY REASONABLE INCREASE ALLOTTED TO THEM IN- TERMS OF ELECTRICITY TARIFF, EVEN TO THEIR INCAPACITATED PARENTS .

  18. philip

    May 11, 2012 at 12:53 pm

    @Ready
    all u’ve said would only make sense,if they give account of how they spent d billions invested in electricity generation-yet no light.

  19. Emmanuel Nwokike

    May 11, 2012 at 1:56 pm

    Nigeria will be better, but only when we start appreciating lives. Generally in this nation, nobody cares about the life of his fellow countryman, this has led to the decay we are currently experiencing in all sectors of the economy.
    Take for instance, bad roads. A lot of Naira is been paid to contractors for this, but what do we see? WORSE ROADS, even after the contracts have been awarded and monies disbursed.
    In the power sector, the Obasanjo Administration spent a lot on the power project, yet till now we can not of producing 5000MW of power. What a shame.
    My final word, you who must loot to survive, remember God is looking at you. And if his judgement seems to tarry on you, the poor you are oppressing will one day be let out of captivity and on that day, “Ghadafi`s” ending will be your lot.
    I love Nigeria

  20. ij

    May 11, 2012 at 2:37 pm

    The mind boggles really , finding the cure for HIV is imminent and all these years, billions wasted ,we are still yet to find a lasting solution to this lack of constant power supply in Nigeria.
    Instead of dealing with the source of the problem they are busy regulating non existent power supply.

  21. BECKY

    May 11, 2012 at 3:33 pm

    I seem not 2 understand d problems with dis our leader, when we could not enjoy what we have. dis is absolutely rubbish

  22. failedgovernment

    May 11, 2012 at 5:46 pm

    The question that every Nigerian is askingi is, how can we have consistent electricity? We are willing to pay the money just to have that part taken care of. Jonathan, confirms it everyday that he’s very incompetent. People can hate Obasanjo all day, still one of the best leaders in Nigeria. Nobody is perfect, he tried for that country.

  23. philip

    May 11, 2012 at 11:06 pm

    @failedgovernment
    what exactly r u saying?what of d billions obj spent on power?y r u trying 2 exonorate him?

    • failedgovernment

      May 12, 2012 at 9:50 pm

      Was Obasanjo the only president of Nigeria? Why don’t you go ask the other corrupt leaders who are to be blamed for the downfall of Nigeria that question? Go do your research and compare where the country was Pre Obasanjo, when Obasanjo was there, when he left office and where it is now?
      Then, you can come back to and ask me any question.

  24. Ib

    May 12, 2012 at 1:37 am

    I think this is an insult to the intelligence of Nigerians.You increase tariff but do not increase quality and service??Very soon they would increase tax.Apparently since subsidy failed they had to get that money one way or the other.

  25. NNENNE

    May 12, 2012 at 5:33 am

    Thought the federal government was contracting power supply to a Canadian firm.What happened? PHCN labor group did not allow them?
    Can the federal government at least let other firms as well as PHCN supply power? People will have the option of choosing who to subscribe to.There will be competition and hopefully increased and efficient power supply.

  26. zikko

    May 12, 2012 at 9:16 am

    It is inevitable that Nigerians have to pay more for electricity supply if we are to enjoy improved power supply. No private sector investor will put his or her money where there is no profit. However to succeed in this electricity issue, every consumer must be metered. Estimated billing must stop. The question is how do you manage your consumption when there is no means of monitoring. DISCOM come off your cocoon and be prepared to make this whole scheme work. It is to the benefit of all of us Nigerians. Make meters available to all whether prepaid or not and then fire the bill. Do not put the cart before the horse.

  27. Jerommy Auto link Nig. Ltd

    May 12, 2012 at 8:37 pm

    Are going to do it the said? That is little question

  28. Jerommy Auto link Nig. Ltd

    May 12, 2012 at 8:40 pm

    Are going to do it the way you said it?

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