Electricity distribution companies will from the next billing period no longer charge their customers monthly fixed charges.
A fixed charge is that component of the tariff that commits electricity consumers to paying an approved amount of money, not minding whether electricity is consumed during the billing period or not.
The commission yesterday broke the news in a statement issued in Abuja.
According to the statement, under the new tariff regime, electricity consumers will now pay only for what they consume from month to month. NERC Chairman/CEO Dr. Sam Amadi said: “This is good news for electricity consumers who have long asked for a more just and fair pricing of electricity. The regulatory commission had promised to address all the complaints against fixed charges through a regulatory process that promotes investments in the electricity industry without unfairly burdening electricity consumers. This is in line with NERC’s mandate to be fair in all its regulatory interventions.”
Although the new tariff regime comes with an increase in energy charges, all electricity consumers (residential as well as commercial) will no longer pay fixed charges, so their total bills will depend on the electricity they actually consume.
Consumers will no longer be spending money every month to pay for fixed charges even when they do not receive electricity in their homes and business.
According to the NERC chief, “the objective of the new tariff is to enable prudent consumers to save money on electricity bill as they can now control their consumption and not pay monthly fixed charges”.
For instance, residential customer classification (R2) in Abuja Electricity Distribution Company will no longer pay N702.00 fixed charge every month. Their energy charge will increase by N9.60. Also, residential customers (R2 customers) in Eko and Ikeja electricity distribution areas will no longer pay N750. 00 fixed charges.
They will be getting N10 and N8 increase in their energy charges. Similarly, the burden of N800.00 and N750.00 fixed charges would be lifted off the shoulders of Kaduna and Benin electricity consumers. These consumers will see an increase of N11.05 and N9.26 in their energy charges.
The new tariff is also good news for commercial consumers. For example, commercial customers’ classification C2 in Ibadan and Enugu will no longer pay fixed charges of N17, 010. 00 and N22, 141. 00. Their energy charge will increase by N12.08 and N13.35.
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