As the federal government battles to save the soul of an under-performing power sector, Nigerians would commence higher payments for power consumed as the Nigeria Electricity Regulatory Commission,NERC has issued a directive for commencing the increased payment this January.
NERC chairman James Momoh confirmed this development in a directive to the 11 distribution companies all over the country,BusinessDay learnt.
The directive issued from a NERC document on it’s website clarified that,”The directive overshadows orders issued on the subject matter and shall take effect from 1st January 2020,and shall have effect on the issuance of a new minor tarrif order on the extraordinary Tarrif review order of the NERC,”
It revealed further that the upward review of the tarrif is based on data it obtained from the Central Bank of Nigeria, CBN and the National Bureau of Statistics with respect to average monthly inflation of 11.3% and exchange are of N306. 97.
According the regulator’s directive, Abuja Electricity Distribution Company residential customers R3 are now to pay N47.09 as opposed to the former N27.20 per unit,while the tarrif for commercial residents has been increased from N27.20 per unit to N47.09.
Ikeja Electricity Distribution Company customers, R3 category will now pay N36.93 per unit against the initial N26.50 in 2019.
The commercial customers C3 that paid for N25.63 per unit in 2016 will now be paying N38.14 per unit from January 2020.
The customers are to pay additional N14.51 per unit representing 282.30% increase while industrial customers of the IKEDC D3 will henceforth pay N35.85 per unit.
The Enugu Electricity Distribution Company EEDC residential R4 customers who used to pay N27.11 per unit in 2015 will begin to pay N48.13 per unit.
Chuks Nwani, an Energy Lawyer and power sector governance expert in reacting to the development told BusinessDay that the regulator must show consistency in ensuring Multi Year Tarrif Order is followed to win back investor’s confidence in an underperforming power sector.
He states further that the Discos should show more faith in this development by ensuring that they speed up their collection mechanisms while addressing concerns of shortfalls.
HARRISON EDEH, ABUJA
