Business

FG increases electricity tarrifs

By Ali Smart…

The Federal Government, through the Nigerian Electricity Regulatory Commission, NERC, has increased energy tarrif, while also dropping the fixed charges being paid by all Electricity consumers.

Hitherto, consumers were expected to pay an approved amount of money along with other tariff.

But the Commission, in a statement on Monday, said under the new tariff regime, electricity consumers will only pay for what they consume from month to month.

Confirming this development, the Chairman/CEO of NERC, Dr. Sam Amadi said: “This is good news for electricity consumers who have long asked for a more just and fair pricing of electricity. The regulatory commission 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.”

Speaking on the new tariff, the NERC boss said: “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.”

Expatiating, he said: “Although, the new tariff regimes comes with an increase in energy charges, all electricity consumers (residential as well as commercial) will 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.”

Speaking further, he said: “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.”

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