NACOP Seeks Fresh Power Tariff Hike Despite 230% Surge for Select Customers

•Calls on subnational governments to protect power infrastructure

Emmanuel Addeh in Abuja

Despite last year’s increase in electricity tariff for band ‘A’ consumers by as much as 230 per cent, the National Council on Power (NACOP), the highest decision-making body in the power sector, has proposed a “cost-reflective” rate for customers nationwide.

In a communiqué issued at the end of the sixth NACOP meeting in Maiduguri, the Borno State capital, the body agreed that although there was a need for subsidies for the vulnerable, it must be targeted and well administered.

Themed, “Consolidating Reforms for a Sustainable Energy Future in Nigeria,” the council was presided by Minister of Power, Chief Adebayo Adelabu, while Permanent Secretary, Ministry of Power, Mr. MahmudaMamman, chaired the plenary/technical sessions.

According to the communiqué, 415 delegates/participants drawn from the public and private sectors and civil society organisations were in attendance, while 20 memoranda on power-related issues were received and considered at the plenary/technical sessions.

Besides, council adopted the need for quality control and assurance in the collaboration between the national and sub-national actors on the enforcement of technical standards and regulations in the sector by the Nigerian Electricity Management Services Agency (NEMSA).

It stressed that the council adopted that NEMSA should continuously engage with the Nigerian Electricity Regulatory Commission (NERC) to ensure a raise in capital expenditure, and also engage the Minister of Power and NERC to ensure that Distribution Companies (Discos) recapitalised to resolve challenges at the transmission-distribution and distribution-utilisation interfaces in order to enhance grid stability.

The communiqué said, “Council noted the existence of a strategic plan of the federal ministry of power and the Transmission Company of Nigeria (TCN) to seek alternative sources of funding to strengthen the northern corridor through embedded generation and double circuit lines.

“Council adopted that electricity must be paid for at a cost-reflective rate, while subsidies must still exist for the vulnerable, but must be targeted and well administered at a manageable and sustainable level.

“Council adopted that market liabilities must be apportioned to all parties, which will be subject to thorough engagements to ensure assets and liabilities apply to all parties.”

The communiqué put together by the Planning, Research and Statistics Department of the ministry added that for a bold agenda for market transformation to enhance Nigeria’s power sector efficiency through strategic market reforms and innovation, Nigeria Bulk Electricity Trading Plc (NBET) should continuously engage stakeholders, especially at the sub-national level, as well as review and represent its submission in line with its upcoming status.

With the recent disruption of power supply to some parts of the north, the council adopted the need to consider constructing additional double circuit 330/132kV transmission lines to reinforce power supply to the North-east.

On calls to fast-track the Mambilla Hydro Power Project, the body stated that the project was currently under litigation, while calling for sub-nationals to devise multi-agency and multi-stakeholder engagements to provide security to critical power infrastructure.

It adopted the need for the Federal Ministry of Power to consider the possibility of assisting Borno State Government in the reconstruction of vandalised distribution infrastructure under the distribution expansion programme.

The council expressed its appreciation to the government and people of Borno State for hosting the sixth edition and agreed that the seventh council will be held in Cross River State.