Nigerian government hikes electricity tariffs; abolishes fixed charges

The Nigerian Electricity Regulatory Commission has increased electricity tariffs, while removing fixed charges for all consumers.

The new tariffs were approved Sunday.

Henceforth, all electricity distribution companies are not to bill customers the fixed charge component, starting from the customers’ next round of billing, the regulator directed.

Fixed electricity charge is a component of the tariff consumers are made to pay monthly, separate from what they actually consume.

The controversial N750 fixed charge nationwide had generated intense controversy among consumers who described it as illegal.

The chairman of NERC, Sam Amadi, said that under the new tariff regime, electricity consumers would only pay for what they consume from month to month.

Mr. Amadi said the removal of the fixed charge component was in compliance with consumers’ demand for a just and fair pricing of electricity in the country.

“NERC had promised to address all the complaints against fixed charges through a regulatory process that promotes investments in the electricity industry without unfairly burdening electricity consumers. This is in line with NERC’s mandate to be fair in all its regulatory interventions,” he said.

Some customers will however pay more for electricity under the new regime of charges.

The NERC chairman said the objective of the new tariff was to “enable prudent consumers to save money on electricity bill as they can now control their consumption and not pay monthly fixed charges”.

The new rates show that residential consumers in houses, flats or residences with electricity lifeline of 50 kWh, classified as R1, would not be affected, as they would continue to pay N4 kWh for unit of electricity consumed.

However, residential customers, who use single and three-phase meters in the houses and residences and are classified R2 under the area covered by Abuja Electricity Distribution Company (AEDC), will now pay N23.51kWh against the old rate of N13.91 kWh.

They will not pay the N702 fixed charge again.

AEDC covers Niger, Kogi and Nasarawa states and the Federal Capital Territory.

Equally, their counterparts in Eko and Ikeja electricity distribution areas will no longer pay N750 fixed charges, but will pay N10 kWh and N8 kWh more respectively in their energy charges.

Consumers in the two zones, consisting residents in southern part of Lagos state and Agbara in Ogun state as well as northern segment of Lagos State are currently paying N12.87kWh and N13.61 kWh respectively.

Electricity consumers in Kaduna and Benin electricity areas will no longer pay N800 and N750 fixed charges, but will pay N11.05 kWh and N9.26 kWh more, respectively.

Their current charges are N16.90 kWh and N12.54 kWh.

Kaduna and Benin zones comprise Kebbi, Kaduna and Zamfara, Edo, Ekiti, Ondo & Delta states.

Commercial consumers in Ibadan and Enugu who use their residences as factory for manufacturing goods and classified as C2, with maximum demand consumption capacity, will no longer pay fixed charges of N17,010 and N22,141.

But, their energy charges will increase by N12.08 kWh and N13.35 kWh respectively.

They currently pay N25.18 kWh and N24.01 kWh respectively.

Details of all charges covering all regions would be available by Tuesday, the commission said.

Mr. Amadi said the new tariff regime is coming with renewed commitments by the electricity distribution companies (DISCOs) to rapidly improve the quantity and quality of electricity supply in their areas of operation as contained in service agreements.

The tariff order, NERC stated, would encourage the DISCOs to develop new sources of supply within their franchises to increase the quantity and quality of supply to target customers on a willing buyer willing seller basis.

These measures, he said, was necessary to improve electricity supply across Nigeria and ensure that the DISCOs increased investment to ensure reliable and uninterrupted electricity supply in the country.

“Henceforth, every DISCO should meter all its customers,” Mr. Amadi said. “The metering policy will be strictly enforced. There is zero tolerance for overbilling of customers.

“An unmetered customer who is disputing his estimated bill would not be expected to pay the disputed bill. He would pay his last undisputed bill as the contested bill go through the dispute resolution process.”

He said those electricity customers who paid for meters under the Cash Advance Payment Metering Initiative (CAPMI), but are yet to be metered within the allowable 60 days would no longer be billed by the DISCOs under the new tariff regime.

The DISCOs would not disconnect those categories of consumers, the NERC Chairman said, pointing out that this was a departure from the old practice where customers were expected to first settle the bill, while dispute resolution was in process.

To close the wide metering gap of over 50 per cent and reduce high incidence of collection losses in the Nigeria Electricity Supply Industry (NESI), NERC said no DISCO was allowed to connect new customers without providing meter first.


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  • Room 23

    ACT 1, SCENE 1
    So, in the evening of Wednesday February 27, Mrs. Yaro flew to Lagos ahead of Mr. Sanusi, skipping work, at taxpayers’ expense, on Thursday February 28 and Friday, March 1… To keep faith with Mrs. Yaro’s date, the CBN governor arrived Lagos, travelling on a chartered flight, on the night of February 28, and checked into the Federal Palace Hotel, passage and boarding all at taxpayers’ expense.

    ACT 1, SCENE 2
    Mrs. Yaro arrived Lagos on the night of March 15, and immediately checked into the Radisson Blu Anchorage Hotel on Victoria Island. Mr. Sanusi flew from Kano to Lagos via chartered jet on the bills of the Nigerian taxpayers. He arrived at about 11 p.m., stopped by his Ikoyi home, before dashing to the hotel where Mrs. Yaro was waiting in a seductive dress in Room 23. The lovers spent that night and the next day together in the hotel…Both Mr. Sanusi and Mrs. Yaro rendezvoused in the hotel till Sunday when both of them returned to Abuja, PREMIUM TIMES learnt.


    ========================================================
    “…I had such a wonderful weekend,” Mrs. Yaro confessed to the governor while aboard her Abuja-bound flight. “You have revived in me what I thought I lost long ago. I thought I lost the passion to love again,” she claimed.
    “Alhamdulillahi. Love you,” Mr. Sanusi responded in a measured tone.

    • Alkali

      AFTER HE SCREWED MRS YARO, THIS IS WHAT WE KNOW……….

      • ₦38.23billion developed legs and got missing in Central Bank under Sanusi Lamido Sanusi,
      • ₦1.97billion was paid out in cash and entered on Central Bank accounts as “inexplicable
      expense” by Sanusi Lamido Sanusi,
      • ₦20billion was paid out in cash as Legal Fees by Sanusi Lamido to persons un-known,
      • ₦3.086billion was paid out in cash by Sanusi Lamido as expense ostensibly to promote
      Central Bank image,
      • ₦160billion was paid out by Sanusi Lamido at Central Bank for self-determined activities,
      • ₦240billion was discretionally doled out at will as ‘donations’ by Sanusi Lamido,
      • ₦1.12billion was taken in cash and entered in the account as paid to a non-operating airline
      for charter service,
      • ₦1.12billion was claimed as spent by Sanusi Lamido on lunch for 12 CBN police
      guards in one year.

  • Room 23

    .ACT 1, SCENE 1
    So, in the evening of Wednesday February 27, Mrs. Yaro flew to Lagos ahead of Mr. Sanusi, skipping work, at taxpayers’ expense, on Thursday February 28 and Friday, March 1… To keep faith with Mrs. Yaro’s date, the CBN governor arrived Lagos, travelling on a chartered flight, on the night of February 28, and checked into the Federal Palace Hotel, passage and boarding all at taxpayers’ expense.

    ACT 1, SCENE 2
    Mrs. Yaro arrived Lagos on the night of March 15, and immediately checked into the Radisson Blu Anchorage Hotel on Victoria Island. Mr. Sanusi flew from Kano to Lagos via chartered jet on the bills of the Nigerian taxpayers. He arrived at about 11 p.m., stopped by his Ikoyi home, before dashing to the hotel where Mrs. Yaro was waiting in a seductive dress in Room 23. The lovers spent that night and the next day together in the hotel…Both Mr. Sanusi and Mrs. Yaro rendezvoused in the hotel till Sunday when both of them returned to Abuja, PREMIUM TIMES learnt.


    ========================================================
    ” I had such a wonderful weekend,” Mrs. Yaro confessed to the governor while aboard her Abuja-bound flight. “You have revived in me what I thought I lost long ago. I thought I lost the passion to love again,” she claimed.
    “Alhamdulillahi. Love you,” Mr. Sanusi responded in a measured tone. —– Premium Times, June 2, 2013

  • bikky

    Imagine this Dr Amadi who has said fixed charges could not be removed has reversed himself, what a nonsense, Nigeria and Nigerian can be driven from pillar to pole by wicked people likeAmadi who truly known that fixed charges is a cheating on our part anyway I hope they will refund illegal ones they have collected. I see this new charges as a better option if NERC can seriously monitor it,last month I was in iIbadan to pay for a flat and what I could got from #3000 is 22kwh I don’t know the yardstick for this billing when the lady was not ready to say something I left their office hope that whenever I am at Ibadan again I will go back there, it basically shows that fixed charges is a fraudulent and illegal way of making money from the customers.

    • Darlington

      Amadi and the entire Board of NERC are bowing out of office tomorrow. He is pretending to side with the masses now after spending years of exploitation as Chairman of NERC. My God help Nigeria.

  • quueuceee

    @disqus_33DVPyujMO:disqus

    Wherever Raji Fashola is; there, the spirit of theft and lies is, also.

  • derick

    Right now crude oil barrel sells at $38 down from $120 it sold for early last year but which surplus
    Goodluck Jonathan mostly frittered away or stole outright. Baleful as it was then, Jonathan’s thefts
    have the same invidious effect on Nigeria as BUHARI’s tentativeness which trenches rather close
    to incompetence. After six months, President Buhari does not have an economic defensive plan,
    or do the assorted mostly empty-headed Ministers he’s cobbled up have any Ministerial plan.
    This one – Raji Fashola – is perhaps the least thinking. He simply doesn’t know the purpose
    and mechanics of public administration. He is a pick-pocket who thinks government means
    taking people’s private money by force of tax or levy. Raji Fashola is not just ignorant,
    but damaging to the peace and functioning of public administration. He’s brought his
    ignorance here with like effect, with 400% hike in electricity fee in a wobbly economy;
    with rising un-employment, retrenchment, inflation and violence abreast. And now,
    without a doubt, Raji Fashola’s ignorance and thefts will bring Buhari’s down soon.

    • Alpha

      The beginning of Fashola’s end. Any leader that sees the suffering masses as cows to be milked will end disgracefully (insha Allah). Buhari should be ready to face the anger of the over exploited citizens, if he did not reverse this and relief fasola of the responsibility of handling the most critical sectors that would be used to rate his success or failure.

  • shonsho

    IF ONLY HE WENT TO A GOOD SCHOOL, RAJI FASHOLA WOULD HAVE BEEN LESS MEDIOCRE,
    LESS ROGUISH AND STEAL LESS, BY LEARNING ETHICS TO COMPLEMENT HOME TRAINING.
    HE STILL STRUGGLES WITH ENGLISH LANGUAGE AND SO HE CANNOT DO ANY CLEAR THINKING
    IF HE MUST FIRST THINK IN PIDGIN ENGLISH BEFORE TRANSLITERATING IT TO GOOD ENGLISH
    SINCE NOTHING IS EVER POSSIBLE IN LOGICAL THOUGHT WITHOUT LANGUAGE COMMAND.

  • johny

    derrick: Thank you O my brother. Raji Fashola has a feudal world view of government.

    It’s called T.S.S. That means Tax, Spend, and, Steal. That’s the limit of his own understanding.

  • mconzend

    This Government might not give Nigerians the change they voted for the people. As we lament the increase on petrol prices and difficulties Nigerians are subjected to during the festive period, they increased electricity tarrif at a time when most part of the country has epileptic power supply. This means more income into the private accounts of Electricity company handlers

  • anwari

    I was thinking the minister for power Mr Raji Fashola would have insisted that the electricity companies should supply Nigerians with prepaid metres before allowing them to increase the tarrif. Removing the fixed charge is just a drop in the ocean, Nigerians are still being charged exorbitantly for what they did not consume through the estimated billing system. They claim that most of the analog meters are too old and not functioning properly . So why cant they be compelled to supply people with functional prepaid meters if he is interested in chamging things there?