Discriminatory electricity charges approved for the 11 distribution companies, DISCOs, by the regulator, National Electricity Regulatory Commission, NERC, effective from February 1, have continued to draw protests from concerned consumers.
Power Under the new tariff regime, electricity consumers under the R2 Class (residential) will pay N24.30 per kilowatt in Abuja; BeninN24.08; Enugu-N27.13; Ibadan N23.09; Jos N26.93; Kaduna N29.27; Kano N20.26 and N26.41; Ikeja N21.30 and N21.80; Port Harcourt N24.91; Eko N24.00 and 25.79; Yola N23.25 and N24.75 accordingly.
Going by the approved tariff, Kaduna DISCO is to charge the highest tariff of N29.27 in 2016, with reduction of N27.04 in 2017 and another increase of N28.75 in 2018. This is followed by the Enugu DISCO which is to charge N27.13 in 2016, with a progressive increase of N30.93 in 2017 and N31 in 2018.
However, Ikeja DISCO, which has one of the highest concentrations of urban areas in the country, has the lowest tariff of N21.3 in 2016, N21.1 in 2017 and N18.94 in 2018.
The tariff is said to cover a 10-year period with expectations that the prices will start reducing from 2018 to 2024, when the sector must have advanced to an operational system that guarantees regular supply.
Discriminatory tariff regime
However, NERC did not explain the criteria for approving such discriminatory tariff regime. When contacted, Head of Media Department, NERC, Mr. Michael Faloseyi, did not answer the numerous calls put to him, neither did he respond to the text message sent to him to that effect.
Expectedly, the high tariff being charged by Enugu DISCO did not go down well with the state branch of the Manufacturers Association of Nigeria, MAN, who confronted the Chief Executive Officer, CEO of the DISCO, Mr. Robert Dickerman on the issue.
In his response, the CEO said that tariffs are set based on each DISCO’s cost of service. “Cost of service, includes CAPEX, OPEX and Losses. Losses include energy taken by customers but not paid for. “Our cost of service is unfortunately the highest in the nation.
I would love to have the competitive advantage other DISCOs have of a lower cost structure. I also appreciate the points that your group made in our meeting that you are competing with other companies who have lower energy costs as a result of their location.
Again, that is the nature and structure of this industry. Neither of us, nor any lawsuit, can change that fact.
“You and the other MAN members have my promise that EEDC will do everything in our power to give you excellent service while we strive to reduce our costs, meter all customers, improve reliability and improve our distribution network.
Eventually, our tariffs will come down substantially. We thank you for your understanding and appreciate the open dialogue that we have begun,” he added.
Already, commercial and residential consumers are groaning under huge estimated bills, incessant outages, lack of prepaid meters and ageing equipment among others which the 11 DISCOs have been linked to the long years of neglect of the electricity sector.
In Ebonyi State, quarry operators have expressed dissatisfaction over exorbitant tariffs charged by Enugu DISCO despite the irregular electricity supply.
In Okposi Umuoghara quarry site in Ezza North Local Council of the state, the Chairman, Ebonyi State Stone Crushers Association, Mr. Stanley Ugonweze, said he had written to both the federal and state governments as well as the DISCO to register their unhappiness.
(Vanguard)
