NERC Increases Electricity Tariff, Stops Fixed Charge

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The National Electricity Regulation Commission (NERC), on Monday, unveiled a new increment of average of N9.00 electricity tariff for all classes of electricity consumers, which will become effective from the next billing period. The regulatory body also announced the abolition of the contentious fixed charges for all electricity consumers.

In the new tariff regime, 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.

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 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 outgoing Chairman of NERC, Dr. Sam Amadi, who unveiled the new tariff in a statement in Abuja.

“The discos will not disconnect them. There is zero tolerance for overbilling 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 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.”

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.”

“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).

The NERC notes that “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.”

Following the tariff increase, the Commission expects the electricity distribution companies to provide better customer service in all aspects of their operations and would hold each company accountable for its service level agreement.

Tags from the story
DISCOs, Electricity Tariff, NERC, Power, tariff

2 Comments

  • Hmm!…. In a country where some people have not seen electricity light for d pass 6months, even those dat use to see d light never enjoy it for 1day…
    And d PHCN company is still talking of increase their bills, while they never stop bringing crazy bills every month.. May God deliver us in dis Nigeria

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