*FCT residents, environs now pay N23.6/hour instead of N14
Electricity consumers in the country will from today begin to pay increased tariff as announced by the Nigerian Electricity Regulatory Commission (NERC) under the Multi-Year Tariff Order (MYTO) 2015.
NERC, which set the take-off of the new regime for February 1, 2016, noted however that there are inbuilt consumer protection mechanisms and incentives for improved service delivery by the DISCOS and fair return on investment in the new tariff order.
Under the new tariff, residential customer (Category R2) in the Federal Capital Territory (FCT), Niger, Nasarawa and Kogi states, which fall under the Abuja Electricity Distribution Company (AEDC) franchise, who previously paid N14 per kilowatt/hour, will now pay N23.60 per kilowatt/hour.
In a similar vein, residential customers in Eko and Ikeja Electricity Distribution areas will be getting N10 and N8 increase respectively in their energy charges. The same situation applies to residential customers in Kaduna and Benin electricity distribution companies who will see an increase of N11.05 and N9.26 respectively in their energy charges.
Meanwhile, Minister of Power, Works and Housing Babatunde Fashola, has explained that the new MYTO due to commence today is aimed at correcting the whole system in the entire value chain of the power sector, and said it was the most viable means of achieving steady power supply in the country.
Fashola, who spoke in an interview with journalists at the site of the 2 X 60 MVA 132/33 KV Sub-station Kukwaba power project during his nationwide inspection, verification and fact-finding tour of projects under his ministry, said the ready acceptance of the new tariff order would also galvanise the sector and boost investments, which would in turn usher in more development in the country.
Consequent upon the increase, NERC has abolished the controversial monthly fixed charge payment and also reiterated its directive to the distribution companies (DISCOS) to abide by its order not to connect new customers without first providing them with meters in order to ensure customers pay only for what they consume.
According to the acting Head of the Commission, Dr. Anthony Akah, the removal of fixed charge under the new tariff regime “was in response to electricity consumers’ complaints and a measure to ensure electricity distribution companies improve on service delivery as their income is dependent on the quantity of electricity used by their customers.
“The Commission, in implementing this cost-reflective tariff, will effectively monitor and enforce all service delivery agreements in the new tariff order.
“The new tariff order, aside from eliminating fixed charge, has a robust mechanism to ensure that electricity distribution companies fully meter their consumers and eliminate ‘crazy’ billing within one year,” Akah said.
FCT residents to get free prepaid electricity meters
Meanwhile, the Abuja Electricity Distribution Company (AEDC) said it would start free installation of 1,250 prepaid meters pilot scheme in the Federal Capital Territory (FCT) this month.
Mr Abimbola Odubiyi, Executive Director of the company’s Regulatory and Stakeholders Relations, said on Sunday in an interview with NAN in Abuja that AEDC in 2015 installed 5,000 free prepaid meters to customers in Minna, Niger State and would in February 2016, commence installation of the free prepaid meters to customers in the FCT.
He said the installations were pilot schemes and the contractors that handled the Minna project were given 5,000 meters but that of FCT would be given 1,250 meters.
Odubiyi said the meters would be used as a test-case so as to ascertain the efficiency of the projects.
He explained that the new energy tariff that would come into effect on February 1 would last for 10 years, noting that during the years, it was expected that energy tariffs would come down and the sector stabilised.
He listed the installation of 400 brand new transformers, building of new customers care centres in Abuja, new billing centres, vending centres and improvement in staff welfare as some of the achievements of AEDC since it joined the energy sector in 2003.
According to him, there has been great improvement in power supply in the FCT and across the country since the privatisation of the power sector in 2013.
He urged customers of AEDC to always pay their energy bills when due so that the company could serve them better.
He cautioned against vandalism of installations so as not to jeopardise the nation’s energy sector.
-NAN
