NERC Confirms Removal Of Electricity Subsidy

The Nigerian Electricity Regulatory Commission (NERC) has confirmed the removal of electricity subsidies by the Federal Government.

NERC’s confirmation comes as the nation continues to confront an energy crisis amid petrol queues, rising diesel costs and national grid collapses.

Addressing a news conference in Abuja, the Chairman of the Commission, Mr Sanusi Garba, said the review was conducted in line with multi-year tariff order that mandates that electricity tariff be reviewed every six months.

He attributed the challenges in the value chain to three significant events as the scheduled maintenance of the Shell Afam vandalism on the gas pipeline to Okpai Power Plant, and pigging of the pipeline supplying gas to Calabar Power Plant.

The Chairman said the combined effect of these three incidents happening when the hydro stations are operating below optimal level due to low water levels accounted for a reduction in the supply of over 1,000megawatts to the national grid.

Garba added that efforts at restoring the lost capacities and the possibility of signing the contract by Okpai 2 Power Plant, a newly constructed power plant with direct access to gas supply, will restore available capacity to over 4,000megawatts soon.

He said it is the duty of electricity distribution companies to inform their customers of tariff review outcomes and cost of power.

He blamed the poor state of electricity supply and grid collapses on vandalism of gas pipelines to power plants, plants maintenance and a trip on the 330KV line from Ughelli power plant.