Apprehension as FG begins electricity tariff review
*Tariff hike likely to begin early 2018
Electricity consumers across the country are now living in fear following the move by the Nigerian Electricity Regulatory Commission (NERC) to review its Multi-Year- Tariff template. Consequently, a number of issues are being proposed for discussion by the regulatory authority as it begins consultations with stakeholders across the country.
In fact, the Daily Times gathered that it is well over 21 months since the NERC last reviewed the Multi -Year Order (MYTO), but consultations for the review of the MYTO 2015 activated since February 2016 started last Wednesday across the geopolitical zones with that of Abuja holding this week.
The fourth review is coming when the National Bureau of Statistics (NBS) announced Nigeria’s exit from recession, and an on-going process for payment assurance for Generation Companies (GenCos) to have more liquidity through the Nigerian Bulk Electricity Trading (NBET) Plc so they can pay for more gas and other services and raise generation levels.
The crux of this review is anchored on two strengths: Cutting down the period for the tariff adjustment from six months or semi-annual (twice a year) to quarterly (four times annually), once every month (12 times in a year) or annually (once every year). The second is the traditional review of the tariff based on production indices that include inflation, forex rate (naira to dollar), gas price and electricity generation output.
The consultation continues today in Abuja near the commission’s headquarters and stakeholders are expected to be at the public hearing.
From all indications, unless the federal government intervenes by way of subsidy or other mechanisms, the current MYTO 2015 may rise significantly when adjusted. If the consultations scale through, the first adjustment of the MYTO 2015 may be likely implemented from January 2018.
In a related development, with the inauguration of the first solar-powered service station, in Onigbagbo, Lagos, on June 12, 2014, Total Nigeria Plc became the pioneer of solar services in West Africa.
In line with its “Committed to Better Energy” ambition, the construction of this first solar-powered service station was part of efforts aimed at providing energy solutions that are efficient and environmentally friendly. The solar-powered photovoltaic (PV) panels on its forecourt roof convert the sun’s rays into electricity.
This electricity is used to supply renewable energy to power the entire service station. It also features zero emissions of harmful green house gases and zero noise pollution.
As part of its commitment to creating better energy, Total Nigeria Plc expanded its solar energy solutions with the introduction of Solar Home Solutions (SHS) and Solar Hybrid Solutions. Total Solar Home Solutions is a solar inverter kit that comprises high quality panels from Sunpower , one of the world’s renowned manufacturers of the most efficient solar panels. These panels come with a 25-year warranty, but have an expected lifespan of over 40 years, a solar inverter (five years warranty) and batteries of premium quality.
These products are designed for households and industrial applications respectively. The load capacity starts from 1.5KVA. The introduction of these products assures Nigerians of a reliable, consistent and eco-friendly source of power with great savings on energy cost amongst other benefits.
Total Solar Home Solutions are already being installed in homes across the country and are professionally installed and maintained to ensure seamless operations without human intervention.
Simon Ugwu
