Discos start introducing a new tariff in November
Electricity distribution companies (DisCos) began applying revised electricity tariffs on Sunday.
The revised tariffs are based on a decision by a technical committee set up to revise tariffs to reflect the September 1 expenditures, which were temporarily suspended after unions threatened to strike nationally.
The committee is chaired by the Minister of State for Labor and Employment, Festus Keiamo. The work is presented in a panel by Joe Adjaero, Vice President of the Nigerian Labor Congress (NLC).
Controversial rates on September 1 were reduced with discounts.
James Momoh, President of the Nigeria Electricity Regulatory Commission (NERC), confirmed that the Commission has approved a revised Multi-Year Tariff Order (MYTO) for 11 DisCos.
The new tariff regime provides the following discounts: category C – 31 percent, group B – 10.5 percent and group A – 10 percent.
According to him, the review committee met until 3.00 Saturday, where it was decided that the agreed terms will come into force from yesterday.
The head of the NERC said that the E and D ranges are frozen.
Momoh said: “We signed it yesterday (Saturday). This was done as the people on the side of the government and union representatives agreed.
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“We just wrote it in very clear language so that DisCos understands their responsibilities and that clients can access it and know that this is an agreed position. They should know that this is the clause signed yesterday (Saturday) that will come into force on November 1st.
Presenting a breakdown of how consumers will pay, Ikeja Electricity said last night: “With the revised tariff scheme, non-MD customers in Band A, with a minimum of 20 hours per day, will now pay N51.22 / kWh. Band B operating a minimum of 16 hours per day will be charged AD 46.93. / kWh; while Tier C customers working at least 12 hours a day will pay 37.95 N / kWh.
“Clients in D and E bands, who operate at least eight and four hours a day, respectively, are not affected by the tariff revision. Their CPT tariffs have been frozen and, as a consequence, the old tariff will continue to apply until CPT is introduced.
“Customers with prepaid meters in the A – C ranges who sell from November 1, 2020 will be charged a new rate, while the same will apply for deferred customers in those ranges during the November billing cycle.”
Other clubs announced new agreed rates yesterday.
The Abuja Electricity Distribution Company (AEDC) said that as of November 1, 2020, AEDC has paid a revised chargeback for services approved by the regulator.
“Customers on the prepaid platform will be the first to experience the revised rate when sold as of Sunday, November 1, 2020, while the revised rate will be reflected in the invoices for customers on the postpaid platform when they receive their electricity bill.
“The rate is divided into 5 bands and is based on hours of delivery to customers. While the D and E range clients are frozen, the A, B and C range clients will see some rate reductions as they sell.
“AEDC assures its clients that in line with the spirit and letter of reflective service fees, it ensures that all clients receive quality service. We also strive to improve customer service throughout our franchise.
“However, we urge customers to see this tariff regime as an opportunity for them to join the AEDC to accelerate the process of improving the quality of services in the energy sector in Nigeria.”
Enugu Electricity Distribution Company (EEDC), Kaduna Electricity Distribution Company (KEDCO), Jos Electricity Distribution Company (JEDC), Port Harcourt Electricity Distribution Company (PHEDC) have all said they have begun implementing the revised tariffs.
But the Ibadan Electricity Distribution Company (IBEDC) said it hasn’t returned to the new price yet. His spokesman Busolami Tunwase said customers would be informed “when we want to start.”
Eko Electricity Distribution Company (EKEDC) General Manager for Corporate Communications, Godwin Idemudia, said: “When we were told to return to the old tariff, we showed respect. So if there is a new directive introducing a different tariff rate, we have no choice but to comply. “
NLC has confirmed that the revised rates have been agreed. NLC Vice President Ajaero, who is also the secretary general of the National Union of Electricity Workers, warned, however, that if the utility companies refuse to reflect what was agreed in the last meeting between business and government, “it means the negotiations have failed.”
He said: “If they say they will implement what we agreed on, this is not history, but if they say they will do something else when they do, you should expect a reaction from the work. It doesn’t require any kind of consultation here and there. They will get it.
“Let’s see how they contradict the interim report, but it’s still preliminary because we want to get to the root of it all. They must go and refuse to reflect what we have so agreed upon. Let’s return to the position before the discussion with the government. “
Source: – The Nation