Power Sector: New Tariffs Would Be Justifiable – NERC

The Chairman of the Nigerian Electricity Regulatory Commission, (NERC), Sam Amadi, has said that the new tariffs consumers are expected to pay for improved power supply will be justifiable as investors will not be allowed to rip them off.

He said this on Channels Television's business programme, Business Morning.

The handover to successor companies, which he described, as significant, will not deviate from the thrust of the power sector reform which is geared towards a creation of an efficient competitive electricity market.

"The process of that market is still on-going, so Nigerian consumers should expect that there would be improvement in customer service," he explained.

The structure of the market created by the government is to ensure sustainability of a gradual and continuous increase in capacity, both in generation, distribution and transmission of power.

Although the new system is expected to result in higher tariffs, Mr Amadi, assured Nigerians that they would not be ripped off as investors would only be allowed to recover costs in a justifiable manner which would not overburden the consumers.

"The tariffs will not be increased until consultations with relevant stake holders, to ascertain a seamless system of operation and payment, are concluded," he added.