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Electricity: NERC Increases Tariffs, Scraps Fixed Charges

Electricity: NERC Increases Tariffs, Scraps Fixed Charges

Chairman, Nigerian Electricity Regulatory Commission, Dr. Sam Amadi

The Nigerian Electricity Regulatory Commission has finally released the new power tariff regime, in which it outlined the various rates of increase in energy charges for consumers across the country.

It also announced the removal fixed electricity charges for all classes of electricity consumers and noted that power users would only pay for what they consume.

About two weeks ago, the Minister of Power, Works and Housing, Babatunde Fashola, revealed that electricity tariffs would increase and urged consumers to comply with respect to paying their bills, as he promised that the sector would record considerable improvement thereafter.

Confirming the tariffs increase on Monday, NERC stated that henceforth, from the next billing period, power distribution companies would 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.

Outlining the rates of increase in tariffs for various customer classes in selected locations across the country, NERC said, “For instance, residential customer classification (R2) in Abuja Electricity Distribution Company will no longer pay N702 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 fixed charges. They will be getting N10 and N8 increase respectively in their energy charges. Similarly, the burden of N800 and N750 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.

This comes less than a week after the House of Representatives asked NERC to stop plans to increase electricity tarrifs.

“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.”

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