MAN accuses NERC, 11 Discos of mischief over tariffs hike

…plans to sue NERC, Discos

Manufacturers Association of Nigeria, MAN, has accused the Nigerian Electricity Regulatory Commission and the 11 electricity distribution companies of mischief over the recent hike in electricity tariffs approved by the federal government to take effect from January, 2016.

MAN said the approval was illegal because it has already secured a court injunction against any tariff increase. The Association comprises over 500 manufacturers described the action of NERC as subjudiced, vowing to approach the court to stop the implementation, and also ask the court to take punitive measures against NERC and the 11 Discos.

National Daily gathered that Electricity tariffs in the country have been increased by over 100 per cent in 2015 alone if the percentage increase approved in the first quarter of this year is taken alongside the latest increase.

The Nigerian Electricity Regulatory Commission (NERC) had last week announced the new tariff regime in which it raised the rates payable by different classes of consumers by over 45 per cent on the average.

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

Similarly, 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.

However, while 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.

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.”