The Nigerian Electricity Regulatory Commission has increased
electricity tariffs, while removing fixed charges for all consumers. The new
tariffs were approved Sunday.
Henceforth, all electricity distribution companies are not
to bill customers the fixed charge component, starting from the customers' next
round of billing, the regulator directed.
Fixed electricity charge is a component of the tariff
consumers are made to pay monthly, separate from what they actually consume.
The controversial N750 fixed charge nationwide had generated
intense controversy among consumers who described it as illegal.
The chairman of NERC, Sam Amadi, said that under the new
tariff regime, electricity consumers would only pay for what they consume from
month to month.
Mr. Amadi said the removal of the fixed charge component was
in compliance with consumers' demand for a just and fair pricing of electricity
in the country.
"NERC 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," he said.
Some customers will however pay more for electricity under
the new regime of charges.
The NERC chairman said the objective of the new tariff was
to "enable prudent consumers to save money on electricity bill as they can
now control their consumption and not pay monthly fixed charges".
The new rates show that residential consumers in houses,
flats or residences with electricity lifeline of 50 kWh, classified as R1,
would not be affected, as they would continue to pay N4 kWh for unit of
electricity consumed.
However, residential customers, who use single and
three-phase meters in the houses and residences and are classified R2 under the
area covered by Abuja Electricity Distribution Company (AEDC), will now pay
N23.51kWh against the old rate of N13.91 kWh.
They will not pay the N702 fixed charge again.AEDC covers
Niger, Kogi and Nasarawa states and the Federal Capital Territory.
Equally, their counterparts in Eko and Ikeja electricity
distribution areas will no longer pay N750 fixed charges, but will pay N10 kWh
and N8 kWh more respectively in their energy charges.
Consumers in the two zones, consisting residents in southern
part of Lagos state and Agbara in Ogun state as well as northern segment of
Lagos State are currently paying N12.87kWh and N13.61 kWh respectively.
Electricity consumers in Kaduna and Benin electricity areas
will no longer pay N800 and N750 fixed charges, but will pay N11.05 kWh and
N9.26 kWh more, respectively. Their current charges are N16.90 kWh and N12.54
kWh.
Kaduna and Benin zones comprise Kebbi, Kaduna and Zamfara, Edo,
Ekiti, Ondo & Delta states. Commercial consumers in Ibadan and Enugu who
use their residences as factory for manufacturing goods and classified as C2,
with maximum demand consumption capacity, will no longer pay fixed charges of
N17,010 and N22,141. But, their energy charges will increase by N12.08 kWh and
N13.35 kWh respectively. They currently pay N25.18 kWh and N24.01 kWh
respectively. Details of all charges covering all regions would be available by
Tuesday, the commission said.
Mr. Amadi said the new tariff regime is coming with renewed
commitments by the electricity distribution companies (DISCOs) to rapidly
improve the quantity and quality of electricity supply in their areas of
operation as contained in service agreements.
The tariff order, NERC stated, would encourage the DISCOs 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.
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