Why We Gave DisCos Implementation Order for New Electricity Tariff To Take Effect Next Wednesday – NERC
Nigerians are to begin higher payment for electricity beginning from Wednesday, 1st of September, 2021.
Platforms Africa reports that the Nigerian Electricity Regulatory Commission (NERC) has already given implemetation Order to the Eleven Distribution companies (DisCos) for the new electricity tariff increase.
“It would take effect from September 1st this year,” Platforms Africa gathered.
The tariff adjustment notification received from NERC by all the DisCos sighted by Platforms Africa, attributed the increase to the nationwide mandate to implement the Service Based Tariff approved by the Nigerian Electricity Regulatory Commission (NERC).
One of the power firm told its customers that the increase will be reflected on the energy bill for October, 2021, which represent consumption for September this year.
It added, according to a report by Platforms Africa: “In addition, for our metered customers with internal vending arrangement,we urge you to adjust the rates accordingly to reflect the new tariff as released by NERC .Eko Electricity Distribution Company appreciates your continued patronage as we go through this period of change and growth”.
Many reports so quoted the Eko Electricity Distribution Company (EKEDC) to have also shared this information with some of its customers, a report the utility firm has denied.
In a Public Notice issued by 15:45 on Saturday, the company said; “Our attention has been drawn to news making the rounds in the media from unsubstantiated sources of a planned adjustment in electricity tariffs.
“Eko Electricity Distribution Plc would like to inform the general public to disregard all such reports not emanating from the management or the company’s website.”
The notice reported to have emenated from Engr. Adeoye Fadeyibi, MD/CEO, continued; “While we continue to review effective and regulatory strategies to manage the impact of changes to macro-economic indices affecting end-user tariffs, the general public will be duly informed, in the event of any changes to the end-user tariff. We advise all customers to disregard all communications that have not been issued by management or published on the company’s website.”
NERC, which issued the implementation order has, however, not deny it.
The new tariff adjustment is likely to met with stiff opposition by consumers in the country in the face of the current economic challenges therein.
The Nigeria Labour Congress had earlier this month insisted that the Federal Government must implement by December the agreement to reduce electricity tariffs by N15 per kilowatt-hour.
It cautioned that it would not accept the serial violations of agreements, noting that it was serving the government a notice.
The NLC President, Ayuba Wabba:“It is significant that the incessant increase of electricity tariff was one of the several issues discussed between the representatives of the Federal Government of Nigeria and organised labour, hereinafter referred to as the principals, on 28th September 2020.
“Specifically, an agreement was reached at the meeting to set up an FGN-Organised Labour Technical Committee on Electricity Tariff.
“The technical committee thus set up on 28th September 2020 had a clear mandate to review several critical issues in the power sector and to suggest reforms that will provide succour to Nigerians over the short and long term.”
Wabba explained that the technical committee submitted its final report in January, noting that the Federal Government and labour met on February 22 and discussed the report.
The statement added, “The principals accepted, among other recommendations, that necessary actions should be taken to use efficiency to bring the gas price to below $1.50 per MMBtu.
“Whereas, the Gencos are required to pay as much as $2.50 per standard cubic feet, other gas users, however, get the same at lower rates, ranging from $1.50 to $1.70 per scf.”
Wabba said the principals resolved that gas companies should be integrated into the Central Bank of Nigeria payment wallet of the Nigerian Electricity Sector Industry to guarantee payments for gas and contract sanctity of Gencos.
The NLC said, “Consequently, congress demands of the Federal Government to reduce the pricing of domestic gas supply to Gencos to less than $1.50 per scf.
“Congress remains implacably committed to the ultimate reduction of electricity tariffs by N15 per kilowatt-hour by December 2021 as contained in the agreement.”
He added that the congress had thus served notice that the posture of the Federal Government to flout agreements was completely unacceptable and would be resisted.