Frequent Blackouts: NERC Removes Monthly Fixed Charge
Adetokunbo Fakeye
Nigerian Electricity Regulatory Commission (NERC) has directed that with effect from 1st of May, electricity consumers would no longer pay the monthly fixed charge where they do not have power supply for a total of 15 days in a month.
Revealing this new directive at a press briefing in Abuja on Wednesday, the Chairman of NERC, Dr Sam Amadi, stated that in cases where there is power outage for up to 15 days in a month, the Distribution Companies (Discos) have been ordered not to collect the fixed charge component in the tariff.
Amadi said: “While the Commission has determined that the fixed charge remains an essential component of the bill, it has however, reviewed the continuous retention of the fixed charge component in the tariff in the light of several complaints by consumers particularly with regards to the continued payment of fixed charge even when energy is not delivered to the consumer.”
“Upon due consultations of these complaints and considering the Commission’s role in the Nigerian electricity supply industry, as provided under section 32D and F of the EPSR Act 2005, it is hereby ordered that effective May 1, 2014, where any customer of a distribution licensee has not received continues electricity supply for a period of 15 days in a month such a customer shall not be required to pay the fixed charge”.
He however, added that the Order shall be adhered to provided “the power outage is not due to non-payment of electricity bill, or other actions of the consumer like tampering, vandalisation or is totally unrelated to the fault of the distribution company.”
Amadi further stated that electricity tariff have not changed adding that changes could only occur after minor reviews of the Multi-Year Tariff Order MYTO 2, which he said has not shown any need to increase tariff.
He explained that the fixed charge was a universal charge which was not peculiar to Nigeria and does not change depending on energy consumption.