7 January 2016

Nigeria: Electricity - New Tariff to Take Effect From Feb.1 - NERC

Photo: Chris Kirchhoff/MCSA
Pylons.

The Nigerian Electricity Regulatory Commission (NERC) has said the new electricity tariff (MYTO 2015) will take effect from February 1, 2016.

This is contained in a statement issued in Abuja and signed by Usman Abba-Arabi, the Head, Public Affairs, NERC.

According to the statement, NERC has directed all the distribution companies to abide by this directive and should not connect new customers without first providing them with meters.

It noted that the acting Head of NERC, Anthony Akah, stated that the removal of fixed charge under the new tariff regime was in response to electricity consumers' complaints.

It added that this was to ensure that electricity distribution companies improve on service delivery as their income was dependent on the quantity of electricity used by their customers.

The statement said the commission would continue to engage stakeholders and members of the National Assembly to address their concerns on the new tariff regime.

"NERC holds NASS in high esteem and assures that both institutions are working to ensure that national and consumer interests are protected."

According to the statement, the DISCOs have inbuilt consumer protection mechanisms and incentives for improved service delivery as well as fair return on investment in the new tariff order.

The statement said the commission, in implementing what it termed cost reflective tariff, would effectively monitor and enforce all service delivery agreements in the new tariff order.

"The new tariff, besides eliminating fixed charge, has a robust mechanism to ensure that DISCOs fully meter their consumers and eliminate 'crazy' billing within one year."

Furthermore, it said with the appointment of an acting head to coordinate the activities of the commission, NERC, had the capacity to continue to carry out its mandate pending the reconstitution of the commissioners. (NAN)

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