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Nigerians to pay more for electricity as Discos apply for rate review

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Nigerian electricity consumers may pay higher tarrif as eleven successor electricity companies have applied for a review of their respective electricity tariffs, the Federal Government has disclosed.

Disclosing this through a notice published by the Nigeria Electricity Regulatory Commission (NERC) on Friday, the Federal Government said the request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations and sustainability of the companies.

In the notice obtained by Channels Television, NERC stated that Discos request for rate review is in pursuant to Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules.

A recent attempt by some electricity distribution companies to hike tariff from July 1 had caused uproar and met strong resistance from Nigerians.

The Nigerian Labour Congress (NLC) had asked the government to shelve plans aimed at increasing electricity tariffs in the country, saying it was insensitive and callous to effect hike in power tariff when consumers are still grappling with the hardship caused by the removal of petrol subsidy.

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It appeared the public outcry worked as it was observed that the Discos shelved the planned tariff increase on July 1.

However, the increase may still happen with the Thursday notice by NERC that the Discos have now applied for rate review.

The regulatory body also stated that it will conduct a Rate Case Hearing on the applications prior to making a ruling as part of the rule-making process and in the exercise of the powers conferred by the Electricity Act.

“Accordingly, the Commission hereby invites the general public for comments on the rate review applications by the distribution licensees. Interested stakeholders are advised to review and take into consideration the excerpts of the Rate Review Applications filed with the Commission by the respective licensees,” NERC stated.

The Commission called on all members of the public and stakeholders to send their comments or representations before the close of business on 20th July 2023.

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The NERC tariff review process was designed with the intent of undertaking major reviews every five years.

Additionally, an extraordinary tariff review is triggered when a Disco requires additional investment beyond the permitted capital expenditure, or when unforeseen operational, legal, or regulatory costs need to be reasonably passed on to consumers.

Minor reviews are also scheduled every six months to adjust tariffs based on changes in gas prices, foreign exchange rates, generation output, and inflation.

In the rate review application of one of the Discos, Ikeja Electricity Distribution Company, it stated that the tariffs are consistently falling below cost-reflective levels because the parameters are not aligned with the current reality of the business putting pressure on Discos and government to subsidize the tariff gaps.

This, it added, undermines the Discos’ ability to fulfill their obligations under the Performance Agreements and Vesting Contract and exacerbates the liquidity challenges in the electricity sector.

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Also, Abuja Electricity Distribution Company, said it requests that the Commission take into account the amended end-user rate since it represents business realities for continuity and sustainability.

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Raisi’s vice expected to be sworn in as president of Iran

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Iran’s first vice president, Mohammad Mokhber, is expected to assume the presidency after Ebrahim Raisi’s death in a helicopter crash as the country gears up for early elections.

The Iranian constitution stipulates that the first vice president take over “in the event of the president’s death, dismissal, resignation, absence or illness for more than two months”.

 

Raisi, who died on Sunday along with Foreign Minister Hossein Amir-Abdollahian and other officials, was nearing the end of his first four-year term as president.

 

Mokhber’s interim appointment requires the approval of Iran’s supreme leader Ayatollah Ali Khamenei, who has the final word in all state affairs.

 

Presidential elections to pick a permanent successor are to be held within 50 days, according to the constitution.

 

A council made up of the parliament speaker, head of the judiciary and the vice president are to be tasked with organising the national vote.

 

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Mokhber, 68, was appointed vice president as Raisi took office in August 2021.

 

The vice president was born in Dezful city in the southwestern province of Khuzestan, where he held several official positions.

 

For years since 2007, Mokhber chaired the Execution of Imam Khomeini’s Order, a governmental organisation tasked with managing properties confiscated following the 1979 Islamic revolution.

 

The foundation, established in the 1980s, has over the years grown to become a major state economic conglomerate with shares in various sectors.

 

Iranians head to the polls for presidential elections every four years since the Islamic Republic’s first vote in 1980.

 

The constitution sets a two-term limit for Iranian presidents.

 

The position of prime minister does not exist in Iran, and the president — assisted by several vice presidents — is responsible for appointing and directing the cabinet.

AFP

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Good morning! Here Are Some Major News Headlines In The Newspapers Today: CBN withdraws circular on cybersecurity levy

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1. The Central Bank of Nigeria (CBN) has withdrawn its earlier circular directing commercial banks, mobile money operators, and other financial institutions to implement the National Cybersecurity Levy. The move was primarily informed by President Bola Ahmed Tinubu’s directive and widespread concerns raised by Nigerians.

 

2. There are indications that President Bola Ahmed Tinubu is expected to receive the scorecard of members of his cabinet this week. The administration will be one year old next week, but the ministers will clock nine months in office tomorrow, having been sworn in on August 21 last year.

 

3. Troops of the Nigerian Army have rescued 383 women and children abducted by terrorists and insurgents in Sambisa Forest in Borno State. Those rescued include women and children who had been held in the forest for 10 years.

 

4. Presidential candidate of the Labour Party (LP) in the 2023 general elections, Peter Obi, has visited victims of Kano mosque arson. Obi, who arrived in Kano, on Sunday, went straight from the Mallam Aminu Kano International Airport to the Murtala Muhammad Specialist Hospital, where some of the victims are receiving treatment.

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5. President Bola Ahmed Tinubu has offered a fresh appointment to Ajuri Ngelale, his Special Adviser on Media and Publicity. Ngelale was named Special Presidential Envoy on Climate Action and secretary of the newly established 25-man committee to oversee Green Economic Initiatives.

 

6. A helicopter carrying Iran’s President Ebrahim Raisi was involved in “an accident” amid poor weather conditions on Sunday, state media reported, with a search underway and no news yet on his condition.

 

7. A man, Taiwo Badejo, has allegedly stabbed his friend, identified simply as Monday, to death over N2,500 debt in the Oko Oba area of Lagos State. It was gathered that Badejo and Monday were arguing over the money when the argument degenerated into a fight between them on Friday.

 

8. The National Drug Law Enforcement Agency has declared a couple, Kazeem and Rashidat Owoalade, wanted for running a cocaine cartel from India. This followed the arrest of four members of the syndicate in Lagos, where a Sports Utility Vehicle was recovered and two houses traced to them were sealed for forfeiture to the Federal Government.

READ  BREAKING: Nigerians to pay more for electricity from October

 

9. Organised Labour has told the Federal Government to perish any thought of offering N100,000 as the new minimum wage. It also asked the government to be serious with negotiations on the issue of workers’ wages, insisting that it used the lowest minimum in arriving at N615,000 as the new minimum wage.

 

10. Olubadan-designate, Oba Owolabi Olakulehin’s nomination is awaiting Oyo State Governor, Seyi Makinde’s approval, Local Government and Chieftaincy Affairs Commissioner, Segun Olayiwola said on Sunday. He disclosed that his nomination as the next Olubadan of Ibadanland has scaled through all the stages, except the final approval.

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BREAKING: Iran’s President Raisi killed in helicopter crash

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Iran’s President Ebrahim Raisi has died in a helicopter crash at age 63, Iranian news outlets have reported. Foreign Minister Hossein Amir-Abdollahian was also among those killed, along with seven others.

His death comes at a fraught moment in the Middle East, with war raging in Gaza. The helicopter crashed weeks after Iran launched a drone-and-missile attack on Israel in response to a deadly strike on its diplomatic compound in Damascus.

Hardliner Raisi became president in a historically uncompetitive election in 2021. Previously the chief justice, he has overseen a period of intensified repression of dissent in a nation convulsed by youth-led protests against clerical rule.

Raisi was the second-most powerful person in the Islamic Republic’s political structure after Supreme Leader Ayatollah Ali Khomeini. The Iranian Constitution mandates that, in the case of the death of the president, the first vice president shall assume with the approval of the Supreme Leader.

 

Iranian state broadcasters are airing Islamic prayers in between their news broadcasts following the announcement that President Ebrahim Raisi and eight others died after the helicopter they were traveling in crashed in Iran’s East Azerbaijan province.

READ  NLC opposes fuel price hike, says it will be met with strike

 

Iran’s government convened an “urgent meeting” on Monday, according to Iranian state news agency IRNA.

 

A photo shared by IRNA showed that the chair that Raisi usually sits in was vacant and draped with a black sash in memory of the president.

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