FG approves new electricity tariff

 …abolishes fixed charges

The federal government has finally approved the hike in electricity tariffs proposed by the Nigerian Electricity Regulatory Commission, NERC,

Announcing the new electricity tariff regime yesterday, NERC, disclosed that the monthly fixed charges for all classes of customers have been abolished.

According to 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 area, that previously paid N14 per kilowatt hour, would now pay an increase of N9.60 making N23.60 per kilowatt hour.

Residential customers in Eko and Ikeja electricity distribution areas would 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 would see an increase of N11.05 and N9.26 respectively in their energy charges.

Residential customers in Abuja would no longer pay the N702.00 monthly fixed charge, residential customers in Eko and Ikeja electricity distribution areas would also no longer pay N750. 00 fixed charges, even as residential customers in Kaduna and Benin distribution areas would no longer pay the N800.00 and N750.00 fixed charges respectively.

For commercial consumers under the C2 category in Ibadan and Enugu distribution companies for instance, while they would no longer pay monthly fixed charges of N17, 000 and N22, 141. 00, their energy charge will increase by N12.08 and N13.35 respectively.

Noting that abolishing of fixed charge was good news for consumers who have long asked for a more just and fair pricing of electricity, chairman of NERC, Dr. Sam Amadi, stated that the commission had promised to address all complaints against fixed charges through a regulatory process that promotes investments in the electricity industry without unfairly burdening electricity consumers.

Amadi added that “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.”