Using the Nigerian Electricity Regulatory Commission (NERC) rule, which was adequately exemplified by Eko Electricity Distribution Company (EKEDC), Platforms Africa, in this tariff Explainer, shows why the tariff hike should not be for all.
The Eko Electricity Distribution Company (EKEDC), Nigeria’s leading power utility firm, it was, which first announced grouping of its customers into five service bands.
Few hours after the NERC adjustments in tariff payable by electricity consumers in Nigeria, the EKEDC swiftly grouped its customers depicting the quantity and quality of supply they receive.
General Manager, Corporate Communications of the Company, Godwin Idemudia, who declared this in a chat with newsmen, noted that this is for quality service delivery in line with promise made on Service Reflective Tariff.
The tariff, which the leading utility firm commenced on September 1, is, according to an earlier report by this leading Online newspaper in Africa, to the growth of the Electricity ecosystem.
“Customers on Band A will receive an average 20 hours per day, Band B customers will receive a minimum of 16 hours per day.
“B and C customers will receive a minimum of 12 hours per day while Bands D and E will receive a minimum 8 and 4 hours a day,” Idemudia said.
THE EXPLAINER
Customers are, based on NERC tariff review, in at least five bands and the hues and cries over the tariff review should not bother, at least, two of the categories.
Those in Group A are those who receive an average 20 hours per day. They are expected to pay above their last bills.
Band/Group B are the customers who receive a minimum of 16 hours per day. Their own tariff will be slightly up but not as much as those in category A.
The categories B and C belong to customers who receive a minimum of 12 hours per day. These people are also expected to be affected by the tariff review according to the proportion of electricity supplied to them.
*Here is where the issue is.* The tariff, known before this arrangement as cost reflective, is now christened service reflective tariff because Bands D and E who are supposed to be the majority, are those who receive a minimum 8 and 4 hours a day. They must, according to the NERC recommendations, not be affected by the tariff hike.
The tariff must be service reflective before an upward adjustment can be made to it.
On this, the EKEDC, also allays the fears of customers within the D and E service bands that the implementation of the service reflective tariff regime is temporary frozen and the existing tariff will continues until the Company improves their supply hours as investments are being made to ensure that is achieved.
What this means is that until a customer enjoys relatively more than 8 hours of service, there should not be increase in his or her tariff.
EKEDC Example
The EKEDC also reiterated that the newly introduced Service Reflective Tariff (SRT) which took effect from September 1 is to the benefit of the customers as it will bring about the desired growth in the sector.
Idemudia said “we understand the economic impact of the pandemic is still, but there will never be a good time for the implementation of the new tariff.”
He assured that the tariff review is aimed at bringing improvements to the quality of service EKEDC provides.
Idemudia thanked customers for their continued understanding and cooperation over the course of the journey for the desired growth in the sector and implore customers to take advantage of the Meter Asset Provider (MAP) scheme for meter purchase to further help in accurate billing of their power consumption and stem the tide of estimated billing.
