Adedapo Adesanya
By Adedapo Adesanya
The National Electricity Regulatory Commission (NERC) has directed all the 11 electricity distribution companies (DisCos) in the country to increase their tariffs.
With this new development, Nigerians will experience a surge in their electricity bills and will have to pay more for power. According to a statement signed by the NERC Chairman, Mr James Momoh, and released through its secretary, Mr Dafe Akpeneye, the new billing system will take effect from April 1, 2020.
According the order, the new tariff was reached based on data obtained from the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and adjusted to the inflation rate.
“Other orders issued on the subject matter, and shall take effect from April 1, 2020 and shall have effect on the issuance of a new Minor Review Order or an Extraordinary Tariff Review Order by the NERC.” the order read.
According to the new tariff, residential customers that fall under the R3 category in the Ikeja Electricity Distribution Company (IKEDC) will now pay N36.92 per unit in contrast to N26.50 per unit previously.
An increase will also affect consumers in the commercial C3 category who previously paid N24.63 per unit, adjusted in 2015 and will now pay N38.14 per unit. The industrial customers of the IKEDC D3 category who previously paid N25.82 per unit will see their charges increased to N35.85 per unit.
As for customers under the Abuja Electricity Distribution Company (AEDC), residential customers R3 that were paying N27.20 per unit will now pay N47.09.
Enugu Electricity Distribution Company residential (R3) customers who were paying N27.11 per unit adjusted in 2015 are to now pay N48.12 per unit.
The commission also directed the DisCos to complete settlement of market invoices.
“All DisCos are obligated to settle their market invoices in full as adjusted and netted off by the applicable tariff shortfall,” it read.
“In the determination for compliance to the minimum remittance threshold in this Order, the commission shall consider verified receivables from MDAs for the settlement period and DisCos’ historical collection efficiency for MDAs.
“The commission shall hold the TCN responsible for deviation from the economic dispatch Order that adversely impact on the base weighed average cost of the wholesale of energy,” the commission said in the statement.
Business Post had earlier reported that the NERC in July 2019 approved a raise in electricity tariffs set to kick off in 2020.
