Nigerians to start paying more for electricity from February 1, says NERC

…Chinese Stock Market Tanks, Trading Halted

The Nigerian Electricity Regulatory Commission (NERC), on Wednesday, said that the take-off date of the new electricity tariff remains February 1.

It also directed all distribution companies to ensure that new customers are provided with meters before they are connected to power source.

In a statement issued in Abuja by the Head of Public Affairs, Dr. Usman Abba-Arabi, the commission stated that the date of the take-off of the new tariff had not changed.

According to the statement, the new acting Head of the commission, Dr. Anthony Akah, said that the removal of fixed charge under the new tariff regime “was in response to electricity consumers’ complaints and a measure to ensure electricity distribution companies improve on service delivery as their income is dependent on the quantity of electricity used by their customers.”

Akah maintained that the commission would continue to engage stakeholders including members of the National Assembly (NASS) to address their concerns on the new tariff regime.

“NERC holds National Assembly in high esteem and we are sure that both institutions are working to ensure that the national and consumer interests are protected,” he said.

In his explanations, he said there are inbuilt consumer protection mechanisms and incentives for improved service delivery by the DISCOs and fair return on investment in the new tariff order.

In the meantime, Asian stocks fell to a three-month low on Thursday after China opted to keep guiding the yuan sharply lower, deepening concerns about the economy and the potential for competitive devaluations by other countries.

Shanghai shares tanked more than 7 percent and trading was halted as the fall triggered a circuit breaker, despite recent supportive measures announced by Chinese authorities.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.4 percent, hitting its lowest level since late September.

Japan’s Nikkei shed 1.5 percent. Australian shares lost 1.5 percent and South Korea’s KOSPI fell 0.7 percent.

Fears for the health of the Chinese economy, reflected recently in a sharply lower yuan, have become a key topic worrying investors so far in 2016.

Shares in Asia extended losses after the People’s Bank of China (PBOC) set the yuan midpoint rate at 6.5646 per dollar prior to the onshore market open, 0.50 percent weaker than the previous fix 6.5314. It was the biggest fall between daily fixings since August and the eighth day in row for the PBOC to set a lower guidance rate.

Offshore yuan fell to a fresh record low since trading started in 2010 before trimming a chunk of its losses on suspected intervention, but this did little to soothe sentiment.

Financial markets fear the yuan’s rapid depreciation may accelerate, which would mean China’s economy is even weaker than had been imagined, and could therefore spark another wave of competitive devaluations around Asia and in other key economies.

“The Chinese yuan is smack bang at the heart of concerns and much has been made of the comments in the China Securities Journal that the weakness in the CNY is not actually causing instability,” wrote Chris Weston, chief market strategist at IG in Melbourne.

“This is key, and traders feel this portrays more CNY weakness to come and therefore additional strain on the global economy, not to mention corporate China.”

Wall Street shares closed at three-month lows overnight amid the general risk aversion, amplified by a continuing decline in crude oil prices and geopolitical concerns following North Korea’s nuclear test on Wednesday.

U.S. Treasuries gained from a consequent flight to quality. The benchmark 10-year note yield sank 9 basis points to its lowest since mid-December.

The yen, another beneficiary in times of perceived global turmoil, also attracted bids. The dollar fell to a four-month low of 117.66 yen.

The greenback was also weighed down after the Federal Reserve’s December policy meeting minutes suggested further U.S. rate increases would be gradual because of concerns about persistently low inflation.

The euro was up 0.2 percent at $1.0804 with the dollar on the back foot.

The Australian dollar, often used as a proxy for China-related trades, fell to a two-month low of $0.7025 .

In commodities, Brent crude fell to an 11-year low of $33.41 a barrel after data showed a surprisingly big build-up of U.S. gasoline stocks, adding to fears of a growing global glut.

The crude oil market has so far shrugged off rising geopolitical risks such as the tensions between Saudi Arabia and Iran, and North Korea’s nuclear test.

Tribune with additional report from NBC