Monday 21 April 2014

FG hasn’t increased electricity tariff since 2011 –NERC

Dr. Sam Amadi
Dr. Sam Amadi


 The Federal Government has not increased electricity tariffs since 2011, the Nigerian Electricity Regulatory Agency has said.

According to the agency, the yearly rise in power tariffs over the years have been benchmarked since 2011, stressing that electricity distribution companies had been mandated to comply with the already established rates.

The commission’s reaction is against the backdrop of a public outcry over the fixed charges reflected in electricity bills despite poor supply, which have prompted protests in some quarters.

The Chairman/Chief Executive Officer, NERC, Dr. Sam Amadi, said there had been series of misconceptions about the Multi Year Tariff Order.

Amadi, in a statement signed by the agency’s Head, Public Affairs Department, Dr. Usman Arabi, explained that the MYTO was a five-year tariff arrangement, adding that the amount paid as electricity bills by consumers had since been benchmarked.

“When we say that we have not increased tariff, we do not mean that the tariff you paid in 2011 is what you are paying now; rather, we mean that the order of the tariff published has not been changed. That is why it is called Multi Year Tariff Order. It simply means that we have benchmarked the cost,” he said.

The NERC boss, however, urged power consumers to report to the commission errant Discos charging beyond what was benchmarked for them in their regions.

According to him, by June 1 of every year, electricity tariffs change in such a way that there is a fixed tariff for the next five years.

Amadi said the distribution companies should not be accused of increasing tariff arbitrarily with regard to the fixed charges since it had been factored into the MYTO.

He also stated that the commission expected a robust metering of electricity consumption by the Discos and warned against estimated billing.

“That someone does not have a meter does not mean that he must be given over-estimated bills. Meters must be read and customers charged accordingly,” Amadi said.

He urged the distribution companies to fast-track the metering system, stressing that the commission was interested in real action.

Amadi urged all customers to pay their bills promptly and those who indulged in electricity theft to desist from the act, warning that the agency would punish anyone found bypassing the metering system.

He stressed that anyone caught would be made to pay 50 times what was stolen.

It was reported last week that the Federal Government had ordered the power distribution companies to monitor, apprehend and detain electricity consumers involved in illegal connection and stealing of electricity.
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