New Electricity Tariff Regime Begins Today

FCT residents, environs now pay ₦23.6 per hour from ₦14

Electricity consumers in the country will from today begin to pay increased tariff as announced by the Nigerian Electricity Regulatory Commission (NERC) under the Multi-Year Tariff Order (MYTO) 2015.

Leadership newspaper report continues:

NERC, which set the take-off of the new regime for February 1, 2016, noted however that there are inbuilt consumer protection mechanisms and incentives for improved service delivery by the Discos and fair return on investment in the new tariff order.

Under the new tariff, residential customer category (R2) in the Federal Capital Territory (FCT), Niger, Nasarawa and Kogi states, which fall under the Abuja Electricity Distribution Company (AEDC) franchise, who previously paid ₦14 per kilowatt/hour, will now pay ₦23.60 per kilowatt/ hour.

In a similar vein, residential customers in Eko and Ikeja electricity distribution areas will be getting ₦10 and ₦8 increase respectively in their energy charges. The same situation applies to residential customers in Kaduna and Benin electricity distribution companies who will see an increase of ₦11.05 and ₦9.26 respectively in their energy charges.

Meanwhile, the minister of power, works and housing, Babatunde Fashola, has explained that the new MYTO due to commence today is aimed at correcting the whole system in the entire value chain of the power sector, and said it was the most viable means of achieving steady power supply in the country.

Fashola, who spoke in an interview with journalists at the site of the 2 X 60 MVA 132/33 KV Sub-station Kukwaba power project during his nationwide inspection, verification and fact-finding tour of projects under his ministry, said the ready acceptance of the new tariff order would also galvanize the sector and boost investments, which would in turn usher in more development in the country.

Consequent upon the increase, the NERC has abolished the controversial monthly fixed charge payment and also reiterated its directive to the distribution companies (Discos) to abide by its order not to connect new customers without first providing them with meters, in order to ensure customers pay only for what they consume.

Dr. Anthony Akah

According to the acting head of the Commission, Dr. Anthony Akah, the removal of fixed charge under the new tariff regime “was in response to electricity consumers’ complaints and a measure to ensure electricity distribution companies improve on service delivery as their income is dependent on the quantity of electricity used by their customers.

“The Commission, in implementing this cost reflective tariff, will effectively monitor and enforce all service delivery agreements in the new tariff order.

The new tariff order, aside from eliminating fixed charge, has a robust mechanism to ensure that electricity distribution companies fully meter their consumers and eliminate ‘crazy’ billing within one year,” Akah said.