FG seals deal with Labour, orders resumption of new electricity tariffs nationwide
The federal government has approved the resumption of the collection of Service-Based electricity Tariffs (SBT) from next week, after sealing a deal with organised labour.
The government was forced to suspend the implementation of the new electricity tariff regime in September, following a threat of industrial unrest by the Nigeria Labour Congress (NLC), its affiliates and allies.
However, the federal government and organised labour have resolved that the tariffs for certain categories of power consumers should be reviewed downward.
While the tariffs for customers in A and B bands were reduced by 10 per cent, the tariff for C band customers was reduced by 30 per cent.
For customers in the D and E bands, their tariffs remain frozen, which implies that there is no increment.
The Special Adviser on Infrastructure to President Muhammadu Buhari, Mr Ahmad Zakari, who confirmed this yesterday during the 51st virtual Power Dialogue organised by Nigeria Electricity Hub in Abuja, noted that since labour has accepted the new terms, the implementation will begin next week.
Zakari said the electricity market in the country will collapse if the government allows it to continue the way it has always been run, adding that the intention of the government is to transit to a market-based regime, where the demand and supply will determine prices.
According to him, after negotiations with organised labour, all the parties agreed to a reduction of tariffs for certain bands while bands D and E remain frozen and C will continue to be subsidised in the short term to the tune of 30 per cent.
He added that there will henceforth be more transparency in the collection of electricity revenues by the Distribution Companies (Discos) since it is now being closely monitored by the government.