Confusion over Alleged Hike in Electricity Tariffs
- Aug 30, 2021 4:39 pm GMT
*NERC denies suspending eligible customer scheme
The Nigerian power sector was thrown into confusion yesterday over conflicting information regarding a resolution by the
In a document marked 023/EKEDP/GMCLR/0025/2021, dated
The company stressed that the increase would be reflected on the energy bill for
“For metered customers with internal vending arrangements, we urge you to adjust the rates accordingly to reflect the new tariff increase as released by NERC,” the memo indicated. Titled: “Tariff Increase Notification”, the document said that the increase followed the approval by NERC, the industry regulator.
“This is to officially notify you that there will be an increase in electricity tariff with effect from
“Kindly note that the increase will be reflected on the energy bill for
“While we continue to review effective and regulatory strategies to manage the impact of changes to macro-economic indices affecting end-user tariffs, the general public will be duly informed, in the event of any changes to the end-user tariff,” the statement said. In May, the federal government through the Minister of Power,
Mamman said instead of a marked hike in electricity tariff, Nigerians should expect an increase in efficiency in the sector to reduce tariffs while managing headwinds from foreign exchange and inflation. He explained that the order issued by NERC on the 26th of
Meanwhile, NERC has said that the Eligible Customer Regulation (ECR), which allows a certain class of electricity consumers to bypass the Discos and deal directly with the
NERC stated that it only restrained the TCN from recognising unauthorised eligible customer transactions in the market settlement statement without the prior approval of the commission. It noted that the directive was that all such unauthorised transactions should revert to billing by the Discos operating in the franchise areas where the customers are located, but without disruption in supply until the customer is conferred with eligibility status.
It stated that the regulation was designed to provide a simple process for securing eligibility status from the commission for a customer whose consumption is in excess of the minimum threshold of 2MWh/h over a period of one month. The statement by the General Manager,
In addition, it said that the supplier or trading licensee to the potential eligible customer should possess an unencumbered generation capacity to sell to other customer as well as evidence of an agreement with the supplier of last resort.
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