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Economy | Power & Energy

No Tariff Raise for Poor and Vulnerable Nigerians, NERC Directs DisCos to Embark on Mass Metering

Aug 27, 2020   •   by   •   Source: Proshare   •   eye-icon 1160 views

Thursday, August27, 2020 / 10:09 AM /by  NERC Nigeria / Header ImageCredit: BusinessDay 

 

In response to media reports that there is an increasein tariffs for Nigerians, NERC wishes to clarify that tariff reviews goingforward will only follow service-based principles.

 

Under these service-based principles DISCOs will onlybe able to review tariff rates for customers when they consult with customers,commit to increasing the number of hours of supply per day and quality ofservice.

 

In all cases poor and vulnerable Nigerians will notexperience any increase. In line with these expectations, DISCOs are directedto engage with their customers on a Service Based Tariff structure. Under theService Based Tariff Structure, DISCOs can only review tariffs for customersunder the following conditions: 

  1. Customers are consulted and communicated aguaranteed level of electricity service by the DISCOs based on hours of supply
  2. Customers are metered
  3. No estimated billing through the strict enforcementof the capping regulation. This means that unmetered customers will notexperience any cost increase beyond what is chargeable to metered customers inthe same area.

 

Even under the above conditions, there will be nochange in tariff for the most vulnerable as tariffs for those consuming 50KW orless remain frozen. Customers receiving less than 12 hours of supply will alsonot experience any change in tariffs.

 

In addition, the President has directed that thereshould be a nationwide mass-metering program in an effort by the FederalGovernment to put a stop to estimated and arbitrary billing for electricity. Hehas also approved a waiver of the import levy on meters, so that those that donot have meters can be supplied as early as possible at reasonable costs.

 

The general public and all stakeholders in the powersector are by this statement urged to disregard any reports of an arbitrarytariff increase affecting Nigerians.


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