By Musa Adamu
Abuja
The Nigerian Electricity Regulatory Commission (NERC) has finally removed the vexed component electricity tariff called fixed charges.
But, the good news comes with an increased in the energy charge payable by electricity consumers.
The removal of the fixed charges component, which had most Nigerians and civil society organisations speak against it, means Nigerians will now pay only for energy consumed.
The commission approved the new electricity tariff regime over the weekend for all classes of electricity consumers.
According to the commission, henceforth, from the next billing period, Distribution Companies (DISCOs) will no longer charge their customers monthly fixed charges.
A statement by the commission said: “Under the new tariff regime, electricity consumers will now only pay for what they consume from month to month.”
Chairman of the commission, Dr. Sam Amadi said: “This is good news for electricity consumers who have long asked for a more just and fair pricing of electricity.”
In the wake of protests against the fixed charges, the commission 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.
The statement further explained that although, the new tariff regimes comes with an increase in energy charges, all electricity consumers would 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.”
Amadi 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.
“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 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.”
Amadi said besides, the cost saving element, the new tariff regime comes with renewed commitments by the 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.
“Henceforth every Disco should meter all its customers. 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 overbilling of customers. An un-metered 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.”
The commission further clarified that no DISCO was 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).”
