The National Electricity Regulation Commission, NERC, on Monday,
unveiled a new increment of average of N9.00 electricity tariff for all
classes of consumers of the product, which will become effective from
the next billing period, just as it also, announced the abolition of the
contentious fixed charges for all electricity consumers.
In the new tariff regime for instance, residential customer
classification (R2) in Abuja Electricity Distribution Company will no
longer pay N702.00 fixed charge every month. Their energy charge will
increase by N9.60. Also, residential customers (R2 customers) in Eko and
Ikeja electricity distribution areas will no longer pay N750. 00 fixed
charges.
They will be getting N10 and N8 increase respectively in their energy
charges. Similarly, the burden of N800.00 and N750.00 fixed charges
would be lifted off the shoulders of Kaduna and Benin electricity
consumers. These consumers will see an increase of N11.05 and N9.26
respectively in their energy charges.
The Commission added, “The new tariff is also good news for
commercial consumers For example, commercial customers’ classification
C2 in Ibadan and Enugu will no longer pay fixed charges of N17, 010. 00
and N22, 141. 00. Their energy charge will increase by N12.08 and N13.35
respectively.”
The outgoing Chairman of NERC, Dr. Sam Amadi, who unveiled the new
tariff in a statement in Abuja, however, descended heavily on the
recalcitrant DISCOs, hiding under estimated billing to rip off
customers, warning that, “Henceforth every disco should meter all its
customers.”
Amadi said, “The metering policy will be strictly enforced. For those
willing electricity customers who paid for meters under the Cash
Advance Payment Metering Initiative (CAPMI) but are yet to be metered
within the allowable 60 days they would no longer be billed by the
electricity distribution companies under the new tariff regime.
“The discos will not disconnect them. There is zero tolerance for
over billing of customers. An unmetered customer who is disputing his
estimated bill would not be expected to pay the disputed bill. He would
pay his last undisputed bill as the contested bill go through the
dispute resolution process. This is a departure from the old practice
which prescribes that customers should first settle the bill while
dispute resolution is in process.”
Amadi who said the new electricity tariff regime was approved over
the weekend, said, “Henceforth, from the next billing period,
distribution companies will no longer charge their customers monthly
fixed charges. Fixed charge is that component of the tariff that commits
electricity consumers to paying an approved amount of money not minding
whether electricity is consumed during the billing period.
“Under the new tariff regime, electricity consumers will now only pay
for what they consume from month to month,” Amadi said, adding, “This
is good news for electricity consumers who have long asked for a more
just and fair pricing of electricity.
“The regulatory commission had promised to address all the complaints
against fixed charges through a regulatory process that promotes
investments in the electricity industry without unfairly burdening
electricity consumers. This is in line with NERC’s mandate to be fair in
all its regulatory interventions”.
“Although, the new tariff regimes comes with an increase in energy
charges, all electricity consumers (residential as well as commercial)
will no longer pay fixed charges, so their total bills will depend on
the electricity they actually consume and may be reduced when they
conserve electricity. Consumers will no longer be spending money every
month to pay for fixed charges even when they do not receive electricity
in their homes and business.”
According to the chairman of NERC, “The objective of the new tariff
is to enable prudent consumers to save money on electricity bill as they
can now control their consumption and not pay monthly fixed charges”.
“In line with the transparent disposition to its operations full
details of the new tariff regime would be advertised in major national
dailies and Commission website within the next 24 hours.
Besides, this cost saving element, the new tariff regime comes with
renewed commitments by the electricity distribution companies (discos)
to rapidly improve the quantity and quality of electricity supply. These
commitments are contained in service level agreements, which are based
on the performance level agreements submitted by the new owners during
the bid process.
“The tariff order also encourages the distribution companies to
develop new sources of supply within their franchises to increase the
quantity and quality of supply to target customers on a willing buyer
willing seller basis. These measures are necessary to improve
electricity supply across Nigeria and ensure that the distribution
companies are working hard to increase investment that will ensure
predictable and ultimately reliable and uninterrupted electricity supply
in Nigeria.”
“Meanwhile, no electricity distribution company is allowed to connect
new customers without metering the customer first. This is to close the
wide metering gap of over 50 per cent and reduce high incidence of
collection losses in the Nigeria Electricity Supply Industry (NESI).
According to the Commission, “the new tariff regime is the result of a
transparent, rigorous and credible rate review process. The tariffs
will lead to greater reliability in the provision of electricity. More
people will progressively have access to the grid, more meters will be
deployed and the need for self generation would be gradually reduced.”
The Commission expects the electricity distribution companies to
provide better customer service in all aspects of their operations and
would hold the electricity distribution companies responsible for their
service level agreements.
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