New electricity tariff coming

By Ali Smart

The planned upward review of electricity tariff by the electricity Distribution Companies (Discos) nationwide may take effect in October.

Investigation revealed that most of the Discos are still consulting widely ahead of the planned tariff review.

It would be recalled that the planned upward review of tariff by the Discos had become a subject of litigation at a Lagos High Court, where a Lagos lawyer, Adebiyi Toluwani, prayed the court to stop the move to increase electricity tariff. But the Discos are holding public forum pending when the matter would be resolved.

Eko Electricity Distribution Company (EKEDC) was the first to give notice on tariff increase, other DISCOs soon followed, with consultations and debates over the move.

Consumers have rejected the move to adjust electricity tariff, arguing that review would only be accepted after necessary infrastructure for constant supply and credible tariff charge have been put in place.

Chief Executive Officer, of Eko DISCO, Oladele Amoda, during the last consultation with customers on the matter said, “there is no way we can have stable power supply without adjusting our tariffs, because currently, we are running at a loss. The company is being run at a loss since its inception, because our investors had invested lots of money into the system, which has not reflected on the supply distribution chain to the customers.”

The Assistant General Manager, Communications and Strategy, EKO DISCO hinted that customers within the company’s jurisdiction have accepted tariff increase on the condition that light will be stable, but we are still holding on for NERC.”

Electricity consumers in Rivers, Akwa Ibom, Cross River and Bayelsa states may pay more for power consumed by the Port Harcourt Electricity Distribution Company.

The Manager, Corporate Communications, PHED, Mr. Jonah Iboma, said the proposal for a review of the tariff was based on the directive by NERC to the electricity distribution companies to charge what they considered fair to their sustenance.

“We began the public consultative forum last Monday which will end by Friday. After this, we hope to send a proposal to NERC because we can’t increase tariff ourselves. We are planning to increase tariff gradually. For us, the timeline we’re targeting is September or October. We may propose between 10-14 per cent increase annually for the next 10 years. Even then, we would still be running at a loss.”

He stated that the notice of intention to review the tariff had already been published on the PHED website and the company’s offices in the four affected states.

“The notice of intention to review tariff has already been published on the company’s website and the company’s offices in the four states that the PHED operates namely: Akwa Ibom, Bayelsa, Cross River and Rivers states.”

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The Head of Communication and Strategy, Ikeja Electricity Distribution Company (IKEDC), Mr. Olaonipekun Adeyanju who also spoke on the issue, said the company was putting final touches to the customer forum notice, which holds later this week.

“On our part we are still doing wide consultation. We hope to hold a public forum this week. As part of NERC guidelines on tariff review, we’re expected to publish the public consultative papers before we make representation to the NERC. We are still far from where we are going.”

The management of Jos Electricity Distribution (JED) Plc. plans to hold its maiden public consultation with customers on Tariff Review, according to its Head, Public Affairs, Mr. Paul Ikwu.

Ikwu stated that the move to hold the consultation was in strict compliance with the directive of the NERC that the Discos should hold such consultation before any tariff review.

According to him, the public consultation would be held across the four states under their supervision. The states are Bauchi, Gombe, Plateau and Benue, adding that the dates, and venues of the consultations would be communicated to both the customers and general public at a date to be announced.

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