Electricity tariff increase will except poor and vulnerable Nigerians, federal government has declared. This is in response to a media report of an increase in electricity tariffs in the country.
The government also asked the general public and stakeholders in the power sector to disregard any report of an arbitrary tariff increase.
The Nigerian Electricity Regulatory Commission (NERC) made this known through a press statement that was issued on Wednesday, August 27, 2020, and signed by its Executive Chairman, James Momoh.
NERC revealed that electricity tariff reviews, going forward, will only follow service-based principles. Under these principles, Electricity Distribution Companies (DISCOs) will only be able to review tariff rates for customers when they consult with them, and commit to increasing the number of hours of supply per day and quality of service.
NERC stated that in line with these expectations, DISCOs have been directed to engage with their customers on a Serviced Based Tariff structure, where DISCOs can only review tariffs for customers under the following conditions:
Customers are consulted and communicated a guaranteed level of electricity service by the DISCOs based on hours of supply.
Customers are metered. No estimated billing through the strict enforcement of the capping regulation. This means that unmetered customers will not experience any cost increase beyond what is chargeable to metered customers in the same area.
Going further, NERC disclosed that even under the above stated conditions, there will be no tariff change for the most vulnerable, as tariffs for those consuming 50KW or less remain frozen. Also, customers receiving less than 12 hours of power supply are expected not to experience any change in tariffs.