Consumers are in for more charges as the Federal Government may approve the take-off of a new tariff regime of N8.50k by the first week of June this year if gas supply remains stable. The current tariff is N6 per kilowatt.

The disclosure came as the Power Holding Company of Nigeria (PHCN) announced yesterday that power generation had increased to 3,600 megawatts.

The Assistant General Manager, Rates and Competition of Nigeria Electricity Regulatory Commission (NERC), Dr. Dikko Halilu, said at the flag-off of stakeholders’ forum on metering code in Abuja that the commission had issued a notice to commence minor review of electricity tariffs.

“We have already given out notice for a minor review of prices. Under the review, we are going to look into whether there have been any escalation in cost of gas and changes in exchange rates before it can be effected.

“As you know, the cost of gas, inflation rate and exchange rate affect the operator’s cost. Latest by the first week of June, we are going to change the tariff price to N8.50k; though we do not expect that to happen because the rate of inflation has come down; material cost and exchange rates have stabilised to some extent,” he said.

“We will enter into an agreement with NGC that if there is more gas, then we will agree to an increase in the price of gas. Presently, gas price is pegged at about $88 last year, but this year it is being expected to go for $132 per cubic feet,” he added.
He said with the expected increase in gas price, the tariff was being projected to be N8.15k per kilowatt.
According to Halilu, government while considering the approval of the new tariff would be looking at how to help the operators recover cost.

ss“If the price granted to electricity producers are not enough for them, then they have to show adequate justification for another increase.  We are only to allow efficient cost and nothing short of that. Whatever will enable producers to recover their cost of production and a reasonable return on investment is what we will consider,” he said.

Sole Administrator of NERC, Mallam Imamuddeen Talba, said the purpose of the metering code is to improve service delivery to consumers and to ensure proper accountability through accurate metering.

Talba said the task of the committee on metering code is to monitor its effective implementation in order to achieve accurate measurement of electricity utilisation in the country.

Meanhwile, the Managing Director of PHCN, Mr. Hussein Labo, has confirmed that power generation has increased to 3,600mw. He also said all power stations are currently generating power, a position that was corroborated by NERC.

“In the last two days, electricity has gone up to 3,500mw on Wednesday and 3,600mw yesterday and almost all the power plants are running,” he said.

Increasing the price of a non-existing service is more like a broad day light robbery.It can only happen in Nigeria,

We now know the reason for the current electicity "outbreak" for which they have been "embarassing" us lately. I have no problem with increase in tariff provided electricity supply is stable.

The current tariff that my last payment was based on was N7.40.

Well, as long as you are using prepaid meter or that you insist on paying for actual there is no wahala as you get to pay for what you use.

The last time I paid before last week was Jan 16 2008 and during that time I had running battles with PHCN at different times who questioned the rational for not recharging often and I repeatedly told them that most of them are daft as their job was limited to making sure that the meter was not tampered with and that I was not using light illegally. I made it clear that with proper implementation of energy efficiency that even N10,000.00 worth of units could last for 6 years.

If care is not taken the next time I will be recharging may be in about 10 years time while they get to bill me for the monthly access charge.

If Nigerians were serious and took energy efficiency serious by now PHCN would have done more to generate more power as their revenues would have done down real good.

Why pay about N2,000.00 per month when you can crash your load and be paying say N300.00 to N500.00 per month?

Price increase, service decline. ONLY IN NIGERIA!

i ve said it earlier in differnt post that the light we are getting now adys is for the shortest period you can all imagine it is for the gov to bring ou their new tarrif plan an later we go back to NORMALCY i.e our generator thanks

Price increase ,service decrease. I even pay nepa bill but NEPA/PHCN refuse to even reconcile the account. Pay for the service they refuse to render.

I think the recent electricity charge is ₦6.60K because that is what I am being charged, please let me know.

things can happen anytime in nigeria

Hahahahah @ Olafolarin - the non existing commodity just came into existence like last week. As such they will claim they have every right to increse their tariff. Afterall, they have been supplying power.

Naija for life, when are things going to be different.

olafolarin:

Increasing the price of a non-existing service is more like a broad day light robbery.It can only happen in Nigeria,

we aren't doing anything about it. . .so sad

Foz1:

I think the recent electricity charge is ₦6.60K because that is what I am being charged, please let me know.

i think you need to go back & check whether that ₦6.60K is consistent

olafolarin:

Consumers are in for more charges as the Federal Government may approve the take-off of a new tariff regime of N8.50k by the first week of June this year if gas supply remains stable. The current tariff is N6 per kilowatt.

The disclosure came as the Power Holding Company of Nigeria (PHCN) announced yesterday that power generation had increased to 3,600 megawatts.

The Assistant General Manager, Rates and Competition of Nigeria Electricity Regulatory Commission (NERC), Dr. Dikko Halilu, said at the flag-off of stakeholders’ forum on metering code in Abuja that the commission had issued a notice to commence minor review of electricity tariffs.

“We have already given out notice for a minor review of prices. Under the review, we are going to look into whether there have been any escalation in cost of gas and changes in exchange rates before it can be effected.

“As you know, the cost of gas, inflation rate and exchange rate affect the operator’s cost. Latest by the first week of June, we are going to change the tariff price to N8.50k; though we do not expect that to happen because the rate of inflation has come down; material cost and exchange rates have stabilised to some extent,” he said.

“We will enter into an agreement with NGC that if there is more gas, then we will agree to an increase in the price of gas. Presently, gas price is pegged at about $88 last year, but this year it is being expected to go for $132 per cubic feet,” he added.
He said with the expected increase in gas price, the tariff was being projected to be N8.15k per kilowatt.
According to Halilu, government while considering the approval of the new tariff would be looking at how to help the operators recover cost.

ss“If the price granted to electricity producers are not enough for them, then they have to show adequate justification for another increase. We are only to allow efficient cost and nothing short of that. Whatever will enable producers to recover their cost of production and a reasonable return on investment is what we will consider,” he said.

Sole Administrator of NERC, Mallam Imamuddeen Talba, said the purpose of the metering code is to improve service delivery to consumers and to ensure proper accountability through accurate metering.

Talba said the task of the committee on metering code is to monitor its effective implementation in order to achieve accurate measurement of electricity utilisation in the country.

Meanhwile, the Managing Director of PHCN, Mr. Hussein Labo, has confirmed that power generation has increased to 3,600mw. He also said all power stations are currently generating power, a position that was corroborated by NERC.

“In the last two days, electricity has gone up to 3,500mw on Wednesday and 3,600mw yesterday and almost all the power plants are running,” he said.

our economy is really heading to destruction, wat a f**k

PHCN should improve and sustain the electricity generation before thinking of tariff increase

We now know the reason for the current electicity "outbreak" for which they have been "embarassing" us lately. I have no problem with increase in tariff provided electricity supply is stable.

You should.

what a mentality with Nigerians.

Well people in other countries are looking for competitive prices.

thats why Nigeria mobile phone charges the most expensive in the world.

Nigeria and politics, i guess this explains why so many people have experience some consistence light for the last few weeks. . . . . all cos they need money to spend during holiday, what a nation

desgiezd:

We now know the reason for the current electicity "outbreak" for which they have been "embarassing" us lately. I have no problem with increase in tariff provided electricity supply is stable.

You most definitely should.

otawa:


thats why Nigeria mobile phone charges the most expensive in the world.

Oga, source please.

otawa:

You should.

what a mentality with Nigerians.

Well people in other countries are looking for competitive prices.

thats why Nigeria mobile phone charges the most expensive in the world.

Another empty, irrelevant comment. Have you sought to find out what the price is elsewhere before castigating the proposed tariff?

South Africa pays 10.15 US cents/kWh which is N15.2 naira/kWh, Malaysia pays N11.13/kWh, even places like Canada with very cheap electricity due to small populations and cheap electricity from hydropower charge N9.27/kWh.

N8.50 is HIGHLY competitive given the above analysis, what should be more important is whether that price is sufficient for private power producers to make a profit and run financially viable power plants.

Higher tariffs are good.  Those who need it less (bums watching tv at home) will be forced to switch off their appliances so those who need it more (e.g. businesses) will be able to use it for productive purposes. The more the price is raised, the more stable the electricity will be. That is all.

Consumers are in for more charges as the Federal Government may approve the take-off of a new tariff regime of N8.50k by the first week of June this year if gas supply remains stable.

it's been approved for over a year now, the govt has been paying ths different -MYTO or something like that
You want better thing you no wan pay for am? follow Afam's advice and cut down on those energy wasting bulbs

charge whatever you want as long as we have prepaid meters

phcn will be forced to maintain supply if users have those meters

Dis Guy:


it's been approved for over a year now, the govt has been paying ths different -MYTO or something like that
You want better thing you no wan pay for am? follow Afam's advice and cut down on those energy wasting bulbs

Inasmuch as i agree with you, but i think for people to be paying this bills, they need to give them the service

Another empty, irrelevant comment. Have you sought to find out what the price is elsewhere before castigating the proposed tariff?

South Africa pays 10.15 US cents/kWh which is N15.2 naira/kWh, Malaysia pays N11.13/kWh, even places like Canada with very cheap electricity due to small populations and cheap electricity from hydropower charge N9.27/kWh.

N8.50 is HIGHLY competitive given the above analysis, what should be more important is whether that price is sufficient for private power producers to make a profit and run financially viable power plants.

This rates would make sense if you can put the per capita income of those countries side by side with Nigeria.

You can only buy with income you have If I make $5000 and you make $500 a month I dont think it would make sense for cost of utilities in our 2 countries to be the same

Fhemmmy:

Inasmuch as i agree with you, but i think for people to be paying this bills, they need to give them the service

They cant charge you what they dont give you especially when you are on the meter- I think everyone should
go for the metre before the full price comes in; that way you are in control

You can only buy with income you have If I make $5000 and you make $500 a month I dont think it would make sense for cost of utilities in our 2 countries to be the same

Gbosa!!!

dayokanu:

This rates would make sense if you can put the per capita income of those countries side by side with Nigeria.

You can only buy with income you have If I make $5000 and you make $500 a month I dont think it would make sense for cost of utilities in our 2 countries to be the same

That is wrong - we have tried to make the same argument about subsidising petrol and we've seen how inefficient and distorted the system is. It doesn't work!

The most important consideration here that most people are paying far in excess of N8.50/kWh for generating their own electricity from generators by buying diesel and petrol.

If per-capita income doesn't stop them from buying N10,000 tiger generators and spending thousands of naira monthly on petrol and diesel then it won't prevent them from paying 8.50 per kWh either.

Utilities cost a given amount to produce, so unless you are requesting that the parlous electricity supply be left to government alone and subsidised, then you have no point.

debosky:


The most important consideration here that most people are paying [b]far in excess of N8.50/kWh for generating their own electricity from generators by buying diesel and petrol.

If per-capita income doesn't stop them from buying N10,000 tiger generators and spending thousands of naira monthly on petrol and diesel then it won't prevent them from paying 8.50 per kWh either. [/b]

str8up GBAM!

my petrol bills are prolly 30k per month - and that does not include engine oil and servicing , or sourcing for petrol during fuel scarcity or the risks involved in storing enough petrol to last for a week's use - meanwhile -phcn bill is n1,500 or thereabouts

if phcn can get their act together, it will be far cheaper to rely on them than on oneself

For illustration purposes, a well maintained 20 kVA diesel generator will consume approximately 1.6 gallons (~6 litres) per hour at full load, which is equivalent to 0.3litres/kWh.

If we assume prices are 65 naira per litre (very conservative), the cost of generating power yourself is nearly [b]N20.00/kWh [/b]and some people are claiming N8.50 is too expensive?  

Let's make informed commentary and not just the same old emotional responses.

Even if PHCN charged N10.00/kWh, it is still far more economical to use that power source than what we are already paying for private generation.

OK Debo, whats the minimum wage in Nigeria to start with. Maybe #10,000.

How much would be the average cost of lighting your house based on the new rates. Then how do you suggest ppl go about it?

Electricity is almost a necesity. So how would a minimum wage earner pay his electricity bill

Until the purchasing power of an average citizen is increased hiking prices would only drive it beyond the grasp of the average citizen

Debo, How many ppl actually have generators, what percentage of the populace have generators. Most sleep in darkness because they cant afford it

dayokanu:

OK Debo, whats the minimum wage in Nigeria to start with. Maybe #10,000.

How much would be the average cost of lighting your house based on the new rates. Then how do you suggest ppl go about it?

Electricity is almost a necesity. So how would a minimum wage earner pay his electricity bill

Until the purchasing power of an average citizen is increased hiking prices would only drive it beyond the grasp of the average citizen

Debo, How many ppl actually have[b] generators, what percentage of the populace have generators[/b]. Most sleep in darkness because they cant afford it

dude forget it - practically every small business has an i pass my neighbour at the very least

and even peeps with genertors also choose to sleep in darkness - running generators 24/7 is not cheap

dayokanu:

OK Debo, whats the minimum wage in Nigeria to start with. Maybe #10,000.

How much would be the average cost of lighting your house based on the new rates. Then how do you suggest ppl go about it?

Electricity is almost a necesity. So how would a minimum wage earner pay his electricity bill

Until the purchasing power of an average citizen is increased hiking prices would only drive it beyond the grasp of the average citizen

Debo, How many ppl actually have generators, what percentage of the populace have generators. Most sleep in darkness because they cant afford it

All these are good points, but you miss the prime point. Until we stop the MASSIVE WASTE of resources on self generating power, you cannot have meaningful economic growth in Nigeria.

Take Oyb for instance - if he has an extra 20k per month to spend on shoes, bags, etc, do you know how much economic growth that can spur if you multiply that across the board? There are millions of people like oyb spending 30k or more on fuel for generators in Lagos alone.

Simply having supply that is more affordable than diesel/petrol generated will be akin to increasing the wages of all the welders, hairdressers, photocopying centres and other small businesses reliant on generators.

Providing steady supply at an affordable price will enable companies to expand operations and do productive activity with the money that is otherwise spent on diesel supply right now. That will bring tax revenue that can be used to help the poor you talk about and so on.

That most people cannot afford electricity cannot be the reason why you will charge rates that are uneconomical and will keep the country depressed in the state it is now.

Without economic tariffs, you are asking the government to continue to run power alone and that will never bring private investment and will keep us bogged down in the inefficiencies of government.

^^^^
forget tax revenue sef

we can bitch till tomorrow about how mtn is ripping prople off - but do you have any idea what their operating costs are.

every base station and switch of every telco in nigeria has duty and standby generators - with enough diesel for a month. and that is their primary source of energy.

the surviving industries have mostly invested in gas turbines etal - of course they will pass the cost to the consumer

reduced operating costs means more profit - which in turn means more expansion and thus more employment opportunities

debosky:

All these are good points, but you miss the prime point. Until we stop the MASSIVE WASTE of resources on self generating power, you cannot have meaningful economic growth in Nigeria.

Take Oyb for instance - if he has an extra 20k per month to spend on shoes, bags, etc, do you know how much economic growth that can spur if you multiply that across the board? There are millions of people like oyb spending 30k or more on fuel for generators in Lagos alone.

Una dey try with that type of wastage. I used generator for just one year to support my business (software & web development) when I realized that I may as well be working for the fuel stations as you simple take funds meant for the business and transfer same to the fuel stations.

I sought for alternatives and ended up building an inverter locally to solve my problem. That was over 6 years ago and the last time I used a generator in my office was somewhere between 2004/2005 and the cost of setting up the system including replacing the wet cell batteries before switching to deep cycle batteries comes to about N30,000.00 per year to provide electricity backup.

Anyone that can comfortably run generators year in year out in Nigeria has more than enough to setup a reliable inverter backup system.

Anyone interested in learning more may see www.justalternativepower.com