Electricity: Govs okay June 1 date for new tariff

L-R: Patrick Yakowa, Mrs. Adejoke Orelope-Adefulire, Liyel Imoke and Peter Obi

State governors on Thursday formally backed the plan by the Nigerian Energy Regulatory Commission to increase electricity tariff with effect from June 1, 2012.

The decision to support the new tariff regime despite the concern raised on Monday by President Goodluck Jonathan that enough advocacy work had not been done on the plan, was taken at a meeting of the National Economic Council at the Presidential Villa.

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

Governors Peter Obi of Anambra, Babangida Aliyu of Niger, Lyel Imoke of Cross Rivers, Patrick Yakowa of Kaduna, Lagos State Deputy Governor, Mrs. Adejoke Orelope-Adefulire; and the governor of CBN, Lamido Sanusi, briefed State House correspondents at the end of the meeting.

Imoke 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.

Obi said as state governors, they would not allow their people to go through more difficulties.

On housing and urban development, Aliyu said the council looked at the revised National Housing and Development Policy and aligned with the Federal Government’s plan towards reducing the creation of slums and the influx of people from rural to urban areas.

He said the council also evaluated the water and irrigation projects going on in states and resolved to collaborate with the Federal Government to ensure quick completion.