Electricity distribution companies in the country have announced the introduction of a new tarrif regime known as service reflective tarrif.
The implication of the new regime is that there will be a marginal increase in the cost of electricity per kwh.
In the midst of despondency of Nigerians who are burdened by estimated billings despite non availability of light and frustration in obtaining prepaid meters, some distribution companies like IEDC and AEDC have announced that they will commence full implementstion Wednesday July, 1. 2020.
Felix Ofulue. Spokesperson of Ikeja electric, in a statement today said,
“This is to notify our esteemed customers that the implementation of the revised electricity tariff by Ikeja Electric Plc will take effect from July 1, 2020. The new tariffs, which are Service reflective, are end-user rates to be paid for electricity based on the level of service (including availability and reliability) provided to a cluster of customers.“
Ofulue says the action is in line with their Performance Improvement Plan (PIP) across the entire network in the coming months and years.
“ The different service levels to all categories of electricity consumers will also be accompanied by a change in tariff which has taken into cognizance changes in macroeconomic indices in the country. This will enable all the market players (Generation, Transmission, Distribution and gas suppliers) in the Nigeria Electricity Supply Industry cover cost of their operations and ensure improved service delivery, “ he added
The plan, according to him is for the sector to gradually make a transition to a full cost-recovery market where the cost of services provided will be fully recovered. Services are also expected to improve within a very short time in customer service delivery, infrastructural upgrade, metering and technological solutions based on the level of investments that will be attracted, going forward.
“For the purpose of customer classification, customers will now be categorized into maximum demand customers (MD) and non-maximum demand (Non-MD) customers, and no longer the usual residential, commercial and industrial customer classes. All customers have now been clustered into different bands depending on the level of service currently being enjoyed, “ he said
He further added that customers who are in the higher band currently being provided with good electricity supply will be expected to pay the true costs of the services being enjoyed while customers who are within the lower band and are not receiving optimal services would be expected to pay a much lower tariff pending improvements in services and the movement to a higher tariff band reflecting improved service delivery.
Ikeja electric, he says, remains committed to bridging the metering gap and reducing the incidence of estimated bills.
The image maker also says the implementation is subject to the approval of the regulator, adding, however, that it is necessary for performance improvement expected by customers
However, Abuja Electricity Distribution Company, AEDC said, “In this new tariff, there will be a marginal increase in the cost of electricity per kwh but it is not all customers that will be immediately affected.
“The principal benefit of this new tariff is to, among other things, ensure improved service to you our esteemed customers with longer hours of power supply.“
But, the development has not gone down well with Nigerians; some, who have described the increment as baseless and a way to further impoverish them.
“Coming at a time that services are getting poorer and more frustrations in obtaining the prepaid meters, leaves much to be desired, “ says Friday Ameh, energy analyst.
Ameh believes that the distribution companies are just out to frustrate consumers while the regulator, the NERC, watches helplessly.
Another consumer opines that the electricity distribution companies need to first improve power supply to users before making new tariff effective, adding that Nigerians have been paying for darkness instead of light.
Nigerians and even some government officials have recently called for the review of the privatisation exercise as the exercise was poorly implemented and managed.
In fact, it was gathered that before now some distribution companies were organizing premium payment for some estates, another conduit pipes for further exploitation as there has not been improvement in services.
“Even before now, some companies have upped their exploitation tendencies with signing of MOUs with some elite estates for higher premiums with promised improvement in services. This has been the ‘divide and rule policy of some of the companies,’ says a consumer.