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FG extends reversal of electricity tariff hike by one week

Last updated: October 12, 2020 9:50 am
5 years ago
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4 Min Read
Power Sector

The meeting between the Federal Government and organized labour has agreed that the reversed electricity tariff hike should be maintained for another one week after the initial two weeks expired.

The extension according to the meeting is to enable an implementation committee to draft a workable plan after the FG and organised labour technial Committee chaired by Minister of State for Labour and Employment submitted its interim report.

A recommendation by the technical committee for six million meters to be distributed to homes before December 2020, but unfortunately, only one million meters are available which almost marred the deliberations.

However, after an intense deliberation at was agreed for distribution of one million meters from October to December based on the lack of capacity of local meter manufacturers, which have only been able to produce just a little above three hundred thousand.

The meeting also deliberated that the six million metres to be produced by the government do not exonerate the distribution companies of their responsibility, also labour accused government weak regulation in the power sector since it was privatised as responsible for the obvious poor performance available in the sector.

It was also agreed that the Nigerian Electricity Regulatory Commission, NERC will meet with the Central Bank of Nigeria, CBN on further deliberation on placing elechargectricity workers salaries on first line.

Also Read : Electricity supply: NERC suspends tariff for 14 days

The meeting agreed that NERC should issue instruction to DisCos on  cases of over billing for customers without meters.

Import waiver for electricity sector to receive incentives to aid further reduction on tariff charges is to be considered by the Federal Government.

The meeting resolved to co-opt the NNPC into the committee due to the price of gas supply 

The Festus Keyamo Technical committee is empowered to work between October 12 to December 12, 2020 to ensure all outstanding issues are resolved.

On the various palliatives promised by government to cushion the effect of fuel and electricity increases, the meeting resolved that ministries departments and agencies should be given one week to get back on the items agreed.

A twist in the meeting was when labour raised an alarm that while negotiating to resolve issues, the Federal Government through the Ministry of Justice served organised Labour a court order. The Federal Government delegation regretted the action and promised to withdraw the court summon on labour over planned strike.

Also, the Federal Government denied media reports credited to the Minister of State for Transportation, Gbemisola Saraki,  that N10 billion was given to labour in place of N2 billion agreed as part of palliatives.

The SGF Boss Mustapha while clarifying the issue said the N10 billion is designed for the transportation sector and not related to the meeting

(Editor: Terverr Tyav)

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