NERC REMOVES ELECTRICITY FIXED CHARGES AND INCREASE TARRIFS

The Nigerian Electricity Regulatory Commission, NERC, has approved over the week end a new electricity tariff regime in which electricity consumers will from now on only pay for the electricity they consume each month.

Fixed charges which make electricity consumers pay an approved amount of money regardless of whether they use electricity during the billing period or not was also to be removed.This means, electricity consumers will from henceforth pay for the electricity used.


While speaking about the new tariff regime, Dr. Sam Amadi, the CEO of NERC, 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."


"Although, the new tariff regime comes with an increase in energy charges, all electricity consumers (residential as well as commercial) will no longer pay fixed charges. 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. According to the chairman of NERC, "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," he said.

Talking about the new increase in the tariff system, he said, "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 N9.60kwh. Also, residential customers (R2 customers) in Eko and Ikeja electricity distribution areas will no longer pay N750. 00 fixed charges. They will be getting N10kwh and N8kwh 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 N11.05kwh and N9.26kwh respectively in their energy charges.The new tariff is also good news for commercial consumers. For example, commercial customers' classification C2 in Ibadan and Enugu will no longer pay fixed charges of N17, 010. 00 and N22, 141. 00. Their energy charge will increase by N12.08kwh and N13.35kwh respectively."