Monday 21 December 2015

NERC increases electricity tariff



The Nigerian Electricity Regulatory Commission has announced the removal
fixed electricity charges for all classes of electricity consumers and noted
that power users would only pay for what they consume while releasing new
power tariff regime.

It will be recalled that 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 on Monday, NERC stated that henceforth, from the next billing period, power distribution companies 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.”
This comes less than a week after the House of Representatives asked NERC to stop plans to increase electricity tarrifs.

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