BEVERLY HILLS, August 26, (THEWILL) – The Nigerian Electricity Regulatory Commission, NERC, has assured that tariff reviews onwards will not affect poor and vulnerable customers, insisting that it will be guided by service-based principles.
NERC in a statement Wednesday also said President Muhammadu Buhari has ordered power distribution companies referred to as DISCOs to end the controversial practice of arbitrary estimated billing that has pitched it against customers. Buhari, it said directed mass metering for customers, who do not have meters, adding that a one-year waiver on payment for import duty has been granted for meters.
The statement signed by its James Momoh reads: “In response to media reports that there is an increase in tariffs for Nigerians, NERC wishes to clarify that tariff reviews going forward will only follow service-based principles. Under these service-based principles DISCOs will only be able to review tariff rates for customers when they consult with customers, commit to increasing the number of hours of supply per day and quality of service.
In all cases poor and vulnerable Nigerians will not experience any increase. In line with these expectations, DISCOs are directed to engage with their customers on a Service Based Tariff structure. Under the Service Based Tariff Structure, 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.
Even under the above conditions, there will be no change in tariff for the most vulnerable as tariffs for those consuming 50KW or less remain frozen. Customers receiving less than 12 hours of supply will also not experience any change in tariffs.
In addition, the President has directed that there should be a nationwide mass-metering program in an effort by the Federal Government to put a stop to estimated and arbitrary billing for electricity. He has also approved a waiver of the import levy on meters, so that those that do not have meters can be supplied as early as possible at reasonable costs.
The general public and all stakeholders in the power sector are by this statement urged to disregard any reports of an arbitrary tariff increase affecting Nigerians.”
