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Published On: Mon, Dec 22nd, 2014

CBN, NERC sign pact on Power intervention fund

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CBN-central-bank-of-Nigeria• No tariff increase for 6 months – NERC

By Etuka Sunday

The Central Bank of Nigeria (CBN), Deposit Money Banks and the Nigerian Electricity Regulatory Commission (NERC) yesterday signed a pact that would stabilise the electricity market and enhance quality of service.

The idea which was initiated by the CBN’s Governor, Godwin Emefiele was to help offset the debts in the electricity industry and reposition the Distribution and Generation Companies(Discos & Gencos) for effective performance through constant gas supply.

It was also in furtherance of the earlier agreement signed between the CBN, Ministry of Petroleum Resources and NERC.

Speaking at the signing ceremony in Abuja, the CBN’s Governor said, the objective was to remove all impediments around the electricity industry so as to be able to generate and distribute stable electricity to Nigerians.

Emefiele said that the issue of non payment  of gas supplier contributed to the poor electricity generation and distribution in the country therefore there was need for the banks to come together to help the sector through the loan, adding that the loan would be disbursed by first week of January, 2015.

He said the pact was to see NERC handles the gas supplier problem properly to enhance adequate power generation by Gencos.

He listed non payment of gas suppliers and gas tariff review as some of the challenges confronting the power sector, assuring that the current tariff review would be cost reflective such that it would affect Nigerians.

Also speaking, NERC’s Chairman, Dr. Sam Amadi said, the gas suppliers have ever being a problem but said that the banks’ support would help to have a guarantee and viable electricity sector.

Amadi assured that the current tariff review would be cost reflective, adding that there would be no tariff increment for residential consumers for the period of six (6) months since the lay down MYTO tariff is still operational.

He noted that the tariff was to allow for full recovery of investment therefore thanked the CBN’s Governor and the Heads of deposit money banks for the initiative, adding that the operation would become visible for potential investors to come in.

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