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Dr. Sam Amadi

NERC increases electricity tariffs, scraps  fixed charges regime

NERC Chairman Dr. Sam Amadi
NERC Chairman Dr. Sam Amadi

Despite the directive by the Federal House of Representatives, last week, to halt any planned increase in electricity tariff on consumers in the country, the Nigerian Electricity Regulatory Commission (NERC), Monday, finally released the new tariff regime, in which it outlined the various rates of increase in energy charges for consumers across the country.

It also announced the scrapping of fixed electricity charges for all categories of electricity consumers and noted that power users would only pay for what they consume.

About two weeks ago, the Minister of Power, Works and Housing, Babatunde Fashola, revealed that electricity tariffs would increase and urged consumers to comply with respect to paying their bills, as he promised that the sector would record considerable improvement thereafter.

Confirming the tariffs increase, , NERC stated that, henceforth, from the next billing period, electricity distribution companies (DISCOs)would no longer charge their customers monthly fixed charges.

Fixed charge is that component of the tariff that commits electricity consumers to paying an approved amount of money not minding whether electricity is consumed during the billing period.

Outlining the rates of increase in tariffs for various customer classes in selected locations across the country, NERC said, “For instance, residential customer classification (R2) in Abuja Electricity Distribution Company will no longer pay N702 fixed charge every month. Their energy charge will increase by N9.60.

“Also, residential customers (R2 customers) in Eko and Ikeja electricity distribution areas will no longer pay N750 fixed charges. They will be getting N10 and N8 increase respectively in their energy charges. Similarly, the burden of N800 and N750 fixed charges would be lifted off the shoulders of Kaduna and Benin electricity consumers. These consumers will see an increase of N11.05 and N9.26 respectively in their energy charges.”

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