{"id":163307,"date":"2022-03-17T13:37:15","date_gmt":"2022-03-17T12:37:15","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=163307"},"modified":"2022-03-17T13:41:12","modified_gmt":"2022-03-17T12:41:12","slug":"nerc-confirms-removal-of-electricity-subsidy","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2022\/03\/17\/nerc-confirms-removal-of-electricity-subsidy\/","title":{"rendered":"NERC confirms removal of electricity subsidy"},"content":{"rendered":"<p>The Nigerian Electricity Regulatory Commission (NERC) has confirmed the removal of electricity subsidies by the federal government.<\/p>\n<p>The commission added that it will review tariff rates every six months.<\/p>\n<p>Minister of finance, Zainab Ahmed over the weekend had announced the<span data-preserver-spaces=\"true\">\u00a0removal of subsidy on electricity tariff.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Speaking during a press briefing on Wednesday, Sanusi Garba, <a href=\"https:\/\/www.withinnigeria.com\/news\/2022\/02\/02\/buhari-to-senate-confirm-nominees-for-nerc-downstream-authority\/\">NERC<\/a> chairman, said the commission played a role in ensuring that tariff rates were regulated.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe role of the commission is to make a determination of the rates that consumers should pay. So we strike a balance between consumers and investors,\u201d Garba said.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He said that the electricity subsidy had been reduced in the past four to five years over its unsustainability regarding investors\u2019 return on investments.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cNow subsidy is a policy issue determined by the government. The government will decide that the rates calculated or agreed by the regulator may at this time not be passed on to consumers. It has happened many times,\u201d he said.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cIn the past four, five years the level of subsidy has gradually been reduced, because you cannot run the electricity market on life support and say that investors cannot get their return on investment until government steps in to provide the required funding.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cSo that policy decision (stopping electricity subsidy) is as announced by the Minister of Finance. The subsidies have been, at one time as high as N600 billion a year, and gradually coming down to about N30 billion or so this year.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Speaking on tariff hike, the NERC chairman said the adjustment was made in February following underlying economic considerations.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWhat happened on February 1, 2022, is a minor review of tariff. It is very clear on our website that every six months we will adjust rates to take care of the foreign exchange component of cost and also inflation,\u201d Garba said.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Garba said the tariff adjustment was straightforward, emphasising that the distribution companies were meant to inform their customers of the changes.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">On the recent blackouts and repeated collapse of the national electricity grid, the NERC boss said the rupturing of gas pipelines by vandals and routine maintenance works on some power plants contributed to the instability of the country\u2019s power system.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Nigerian Electricity Regulatory Commission (NERC) has confirmed the removal of electricity subsidies by the federal government. The commission added that it will review tariff rates every six months. Minister of finance, Zainab Ahmed over the weekend had announced the\u00a0removal of subsidy on electricity tariff. Speaking during a press briefing on Wednesday, Sanusi Garba, NERC [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":163308,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[32786,6690,32787,958],"class_list":["post-163307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-electricity-subsidies","tag-nerc","tag-sanusi-garba","tag-zainab-ahmed"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>NERC confirms removal of electricity subsidy<\/title>\n<meta name=\"description\" content=\"The Nigerian Electricity Regulatory Commission (NERC) has confirmed the removal of electricity subsidies by the federal government\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.withinnigeria.com\/news\/2022\/03\/17\/nerc-confirms-removal-of-electricity-subsidy\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NERC confirms removal of electricity subsidy\" \/>\n<meta property=\"og:description\" content=\"The Nigerian Electricity Regulatory Commission (NERC) has confirmed the removal of electricity subsidies by the federal government. 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