The federal government has commenced gradual migration to fully deregulate the power sector with the current new tariff, according to Adebayo Adelabu, minister incharge of the ministry.
The implication according to Adelabu, at the ministerial briefing in Abuja, would be freeing funds for other critical sectors to achieve the Renewed Hope Agenda of the present administration.
He called for patience and understanding of Nigerians, who he agreed are burdened by the current hardship, adding that the new tariff is pro poor and will be based on service agreement of a minimum of 20 hours between the consumers and the electricity distribution companies, (DisCos).
The development is coming amid sanctioning of Abuja Electricity Distribution Company (AEDC) over wrongful billing involving other consumers not on the elite band A.
According to the Minister, movement towards cost reflective regime would bring efficiency on the part of service providers and good management on the part of consumers stressing that sanctions would be meted out to non compliant companies.
According to musiliu Oseni, executive secretary of Nigerian Electricity Regulatory Commission (NERC) the new tariff is strictly for band A consumers, who enjoy between 20 to 24 hours, adding that the commission would ensure compliance and sanctions where necessary.
But AEDC has become the first casualty for wrongly applying the new tariffs on the residents of the nation’s federal capital city.
According to Oseni, AEDC’s offence was unpardonable, querying if the same scenario could have gone the reverse.
“AEDC had to be sanctioned because it was an unpardonable offence. Why could it not go the other way round of charging lower, but most time these are deliberate action and they have to pay the fine and as well refund the excess payments by consumers, to them,” he said.
According to him the sanctions include a N200 million fine and a directive that the wrongly billed customers on bands B, C D and E be appropriately refunded, with evidence of compliance with the directives to be deposited with the Commission by April 12, 2024.
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The sanctions were earlier announced in a Friday statement by the NERC management following complaints by several Abuja residents who tried to buy electricity units days after a tariff increase was announced.
Oseni, acknowledged receipt of complaints, even before the new tariff by some residents over wrongful billings, adding that the commission will ensure that all unlawful billings are refunded to the affected consumers.
The new tariff regime will see customers pay N225 kilowatts per hour, up from the current N66.