Adedapo Adesanya
By Adedapo Adesanya
One of the two electricity distribution companies in Lagos, Eko Electricity Distribution Company (EKEDC), has said that it will provide meters to all customers within its coverage area by March 2021.
This was disclosed by the Head, Power Procurement and Regulatory Department, Mr Nosa Igbinedion, at the DisCos Extraordinary Tariff Review Stakeholders Consultation held in Lagos on Wednesday.
In addition to this, the company is proposing to raise its average tariffs from N28.25k per kilowatt to N42.41k per kilowatt from April 1, representing a 50 percent hike in price that consumers will pay from next month.
Mr Igbinedion said that 245,915 customers have so far been metered, while 253,768 customers were yet to be issued meters under the Meter Assets Providers (MAP) scheme approved by the Nigerian Electricity Regulatory Commission (NERC).
He disclosed that there are, however, measures in place to achieve this in the next 12 months, as EKEDC has engaged seven MAPs to meter its customers in its three circles and 10 districts.
EKEDC’s three circles are made up of West Circle, with three districts: Agbara, Ojo and Festac; Central Circle and its four districts: Ijora, Mushin, Orile and Apapa; East Circle and it three districts – Lekki, Ibeju and the Island.
According to Mr Igbinedion, all customers within these operational networks will be metered as soon as they indicate interests by applying for MAP and making payments.
He explained that customers were expected to pay N39,765.86 (VAT inclusive) for a single-phase meter and N72, 085.68 (VAT inclusive) for a three-phase meter.
He added that the consultation was one of the requirements set by NERC before any DisCos could review its tariff, noting that the proposed increment was aimed at achieving a cost-reflective tariff.
Mr Igbinedion explained that the last Multi Year Tariff Order (MYTO) was implemented in 2016 when the exchange rate was N198. 97 to one American dollar, nothing that the rate had since moved up to an average of N309.97 per dollar.
He said that the inflation rate which was 8.8 percent in 2016 had also gone up to 11.3 percent, adding that gas and other equipment used to power distribution and for other maintenance were imported.
Mr Igbinedion said that the new tariff would enable the EKEDC to attract investors, embark on network rehabilitation and augmentation and with this, it would be able to finance its daily operations and fulfil its obligations to other players in the electricity value chain.
