PRESS RELEASE
New Tariff Regime Removes
Fixed Charges
The new electricity tariff regime approved over the weekend by
the Nigerian Electricity Regulatory Commission (NERC) has removed fixed charges
for all classes of electricity consumers. Henceforth, from the next billing
period, distribution companies will no longer charge their customers monthly
fixed charges. Fixed charge is that component of the tariff that commits
electricity consumers to paying an approved amount of money not minding whether
electricity is consumed during the billing period.
*Amadi
Under the new tariff regime, electricity consumers will now only pay for what
they consume from month to month. According to the Chairman/CEO of NERC, Dr.
Sam Amadi, "This is good news for electricity consumers who have long
asked for a more just and fair pricing of electricity. The regulatory
commission 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".
Although, the new tariff regime comes with an increase in energy
charges, all electricity consumers (residential as well as commercial) will no
longer pay fixed charges. Their total bills will depend on the electricity they
actually consume and may be reduced when they conserve electricity. Consumers
will no longer be spending money every month to pay for fixed charges even when
they do not receive electricity in their homes and business.
According to the chairman of NERC, "The objective of the
new tariff is to enable prudent consumers to save money on electricity bill as
they can now control their consumption and not pay monthly fixed charges".
