Abuja DisCo begins implementation of new service-based electricity tariff

Abuja Electricity Distribution Company (AEDC) says it has started implementing the new Service-Reflective Tariff Plan (SRT) across its franchise area from Tuesday, September 1.

Oyebode Fadipe, AEDC’s general manager, Corporate Communications, said the increment in tariffs would result in substantially longer hours of power supply and would also result in a good quality voltage profile, swift response to faults clearing and provision of pre-paid meters.

Fadipe stated that the service-reflective tariff plan is an innovative structure designed to deliver on the need for an upward review of tariff with an attendant caveat that there must be improvement of service in the power sector.

“The service reflective tariff plan signals a new approach to tariff design that is required to ensure equity and fairness in delivering quality service to customers,’’ Fadipe stated.

Nigerian Electricity Regulatory Commission (NERC) had directed DisCos to maintain the life-line tariff of N4 for all customers consuming less than 50kWh of energy per month “as a safeguard for the less privileged members of the society”.

BusinessDay had reported that President Muhammadu Buhari approved the implementation of the proposed cost-reflective energy tariff for the Nigerian Electricity Supply Industry (NESI) and that residential areas classified as “poor” would not be affected.

In the new service-based reflective tariff structure, customers on estimated billing will also not be affected as the president has ordered mass metering of consumers across the country.

The new tariff regime kicks off on September 1, and it is expected to be reviewed quarterly.