The new electricity tariff as contained in the Multi-Year Tariff Order (MYTO) document is to begin by February 1, 2016, the Nigeria Electricity Regulatory Commission has disclosed.
Acting Head of the Commission, Dr. Anthony Akah stated in a statement that the new tariff order aside from eliminating fixed charge also has a robust mechanism to ensure that electricity distribution companies fully meter their consumers and eliminate crazy billing within one year.
He said 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.”
Akah who disclosed that there are inbuilt consumer protection mechanism and incentives in the new tariff order said in implementing the cost reflective tariff, the Commission will effectively monitor and enforce all service delivery agreements in the new tariff order.
Consequently, the Commission has reiterated its directive to the distribution companies (DISCOs) to abide by its order not to connect new customers without first providing them with meters.
Akah said that the Commission will continue to engage stakeholders including members of the National Assembly to address their concerns on the new tariff regime, adding that “NERC holds the National Assembly in high esteem and we are sure that both institutions are working to ensure that the national and consumer interests are protected.”
In the new tariff design, residential customer category (R2), in the Federal Capital Territory (FCT), Niger, Nassarawa and Kogi States for instance, which fall under the Abuja Electricity Distribution Company (AEDC) franchise, which previously paid N14 per kilowatt hour, will now pay N23.60 per kilowatt hour.
Similarly, residential customers in Eko and Ikeja electricity distribution areas will be getting N10 and N8 increase respectively in their energy charges. The same situation goes for residential customers in Kaduna and Benin electricity areas who will see an increase of N11.05 and N9.26 respectively in their energy charges.