• N4 for the poor’ — DisCos begin new service-based electricity tariff

• To penalise Discos, TCN for power rejection, under-supply

Emmanuel Addeh in Abuja

The Nigerian Electricity Regulatory Commission (NERC) yesterday issued guidelines to stop the blame game between the Transmission Company of Nigeria (TCN) and Distribution Companies (Discos) over the latter’s alleged incessant rejection of power.

The new guidelines came as the revised electricity tariffs to be paid by some electricity consumers, earlier approved by President Muhammadu Buhari and the NERC, commence today.

Under the guidelines, NERC said that, “the federal government under the Power Sector Recovery Plan (PSRP) financial plan has committed to funding the revenue gap arising from the difference between the cost reflective tariffs determined by the commission and the actual end-user tariff during the transition to the cost-reflective tariff.”

In documents containing the official communication between NERC and the Discos, which detailed the reviewed rules, obtained by THISDAY, the regulator said any rejection of power by either the Discos or under-supply by the TCN would now attract a “capacity charge.”

TCN has always complained that the country’s power supply situation is worsening because of the rejection of electricity allocation by Discos, noting that the problem persisted because the distributors can drop load and increase it at will without being penalised.

“Where it is established that the TCN is unable to deliver Discos’ load allocation, TCN shall be liable to pay for associated capacity charge. Where Discos fail to take its entire load allocation due to constraints in its network, the Disco shall be liable to pay capacity charge as allocated in its vesting contracts,” NERC stated.

The new order instructed the Discos on the modalities for billing customers who fall under different classifications with the commencement of the new tariffs, saying that Nigerians who receive less than 12-hour supply of electricity will not be affected in the latest increase until service improves.

“This order shall take effect from September 1, 2020 and shall cease to have an effect on the issuance of a new minor review order or an extraordinary tariff review order by the commission,” NERC stated.

It said the commission took the decision after it reviewed the application filed by the Discos, taking into consideration the outcome of the public consultations held in February and March and thereafter approved the new tariff regime that will cover from September to June 2025.

“The order reflects the impact of changes in macroeconomic parameters and revenue requirements and a revised tariff design that aligns rates paid by customers with the quality of services as measured by the average availability of power over a month period.

“Pursuant to the objective of incentivising a continuous improvement of service for all customers, there shall be no tariff reviews for customers experiencing an average power supply availability of less than 12 hours per day over a period of one month.

“Unmetered customers within service bands A,B and C thus benefiting from a supply availability in excess of an average of 12 hours per day over a period of one month as affected by this tariff order shall be protected by the provision of order on capping of estimated bills in the NESI and federal government intervention on accelerated metering of all customers.

“The commission orders that you shall continue to maintain the lifeline tariff of N4 per kW for all customers consuming less than 50kw per hour of energy per month as a safeguard for the less privileged members of the society,” NERC added.

On the objectives of the order, NERC noted that it seeks to ensure that prices are fair to customers and sufficient to fully recover the efficient cost of operation, including a reasonable return on capital invested in business by the Discos.

The power sector regulator said the new guidelines would provide a path to a transition to full service-based cost-reflective tariffs by July 2021 and re-classify as well as disaggregate customer clusters on the basis of commitment to quality of service.

Upon evaluation, NERC said it considered and approved five tariff service bands representing relative quality of service experience.

It told the power distributors that it arrived at the new rates after considering the country’s rate of inflation for July 2020 as obtained from the National Bureau of Statistics (NBS), which was 12.82 per cent.

NERC further pegged the applicable exchange rate of N383.80 and gas price of $2.50/mmbtu and gas transportation cost of $.80 mmbtu.

However, it said there would be a “tariff freeze” for customers in bands D, E, directing that they shall be charged tariffs obtainable prior to the take-off of the new rates pending when power improves.

“Following consultations on directions on tariff policy, the commission hereby approves a deferment of the applicable tariffs for customers in service band D and E ( less than 12 hours per day over a month),” it added.

NERC explained that where there is a failure to deliver a committed service level over the evaluated period of 60 days, the rates payable by customers should be retroactively adjusted in line with quality of service delivered over the same period of time.

It said under the current framework, the minimum market remittance threshold for Discos would be determined after deducting the revenue deficit arising from tariff shortfall from aggregate Nigerian Bulk Electricity Trading (NBET) Limited and Market Operators’ (MOs) market invoices.

The regulator stated that the Discos should be availed the opportunity to earn their revenue requirement only upon fully meeting payment obligations, including repayment of CBN -NEM facility, 100 per cent settlement of MO invoices and full settlement of 83 per cent of NBET’s monthly invoices, being the minimum remittance threshold prescribed in the order.

SOURCE

Provide the electricity first, Nigerians are willing to pay.

We can't continue paying for darkness.

Stop estimated billings.

Provide pre-paid meters to all households in Nigeria at subsidized rates.

NERC is full of slow pokes
Increasing tariff in this trying period of global pandemic is unacceptable and inhumane

NERC explained that where there is a failure to deliver a committed service level over the evaluated period of 60 days, the rates payable by customers should be retroactively adjusted in line with quality of service delivered over the same period of time.

This is what we were searching for in the news, as we have been advocating for a long time now.

We will pay for only what we use.
This is the same way it is done in saner climes.

A better Nigeria is all we want.
A better Nigeria is what we shall get.
Slow and steady we will get there.

Permit me to derail, a large percentage of us now see The guy with the moniker Reighteousness99 as a celebrity. We’ve forgotten the likes of Shibaraba, pocohantas, Nwamaikpe, donatan18... these people go beyond face value to evaluate things. Someone spams virtually all the thread propagating a gospel that says only Christians would make heaven, yet we glorify these person amidst the relics and fanaticism we’re already battling? It’s beats my imagination, to see a full graduate reason devoid of common sense. A host of us are suffering from the backfire effect, hence when we are confronted with common reasoning, we quote the Bible and all religious scriptures to justify our folly. It’s truly finished.
I long for the day the black man will give common sense a chance, only then can we create the society we want for ourselves

Pollosa1:
We have been scammed one again. Buhari said no tariff increase o

dre11:
• N4 for the poor’ — DisCos begin new service-based electricity tariff

Meaning you don't even have 4 Naira to pay?!

Who do una wailer dis kind tin nah.
Must you wail continously like dis?

Even on top 4 Naira?
Make God helep una o.

Meanwhile, You worship Baba OBJ that 10 BILLION DOLLARS for power disappeared under him without us seeing the power for 8 years!
That one did not scam you o!

Poverty die die die.......
Amen!


We move on..........

The guy in question never forced his preaching down your throat. It's your choice to believe or disregard his opinion. Righteousness 99 opted to use this platform to spread a message he believes can impact positive change to the world. You can also do the same.The sky is big enough for all birds to fly.so quit hating

By next yr, nobody go see meter, but tariff don rise...

to

Another policy that may never be implemented.
Even if it's actually implemented, it means that DISCOS will find excuse not to supply power to the less privileged since they don't pay less.
Of what economic use will it be to supply light places that pay less instead of areas that pay higher.

nice one

ggirl4real:
Provide the electricity first, Nigerians are willing to pay.

We can't continue paying for darkness.

Stop estimated billings.

Provide pre-paid meters to all households in Nigeria at subsidized rates.

This is a very sensible comment from a true Nigerian.
A lady that wants the best for her country and citizens.
Not like comments of those that hatred for their country has turned them to something else.

We gave you your first like G Girl!

A better Nigeria is all we want.

BEDC should be the worst DISCO in Nigeria. Very incompetent and sluggish. We have been bitterly managing the 8hrs of light they give us a day in a central location in Asaba. If FG really meant well for it's citizens, they should be penalising these DISCOS heavily. My transformer spoilt and it took them one whole week to come check it, then boom they drive off saying that the wire that burnt will come from their head office in Benin and not from their branch office in Asaba. It's been up to a month now this foolish people aren't responding at all. After consistent calls to them, one CC agent called me asking me why I'm calling them consistently that they don't have our transformers as among their list of faulty ones. What nonsense I wish I can get that nonsense lady again to tell her word. Na only ladder dem sabi carry with their nonsense trucks. Their other customer care agents keep apologizing and keep forwarding messages to their so called appropriate quarters.

I work from home and it hasn't been funny buying an inflated petrol every day because of some wicked and lax people.
God will surely punish every hand involved in the poor electricity distribution in Nigeria. Nonsense!!

Paying for darkness..... There's God ooo

I just pity the field workers, hopefully, people won't transfer aggression to them, in the face of government insensitivity to the plight of the common man

Seriously serious.

We can handle your ebay.com orders for you. Check link below https://www.nairaland.com/5623220/buy-ship-usa-nigeria-ebay

I thought they'd suspended ontill next year?

Hope this government will not kill us with charges and tax. Eventually, North will pay little and South will pay more. That's Baba body language. When Buhari is through with us, even Zombies will cry.

Noted

If u stay in an area with constant electricity (15-20hrs daily), with a pre-paid meter then try and add renewable energy like inverter batteries, solar..

What I do is that for 6hrs daily I switched of my pre-paid meter and use only renewable energy, with this I can use 3k for 3-4mths on my prepaid meter.

post=93458682:

This is a very sensible comment from a true Nigerian.
A lady that wants the best for her country and citizens.
Not like comments of those that hatred for their country has turned them to something else.

We gave you your first like G Girl!

A better Nigeria is all we want.

And what makes you think that your opinion matters??
By the way, you are always on nairaland, when do you find time to attend to your customers??

Yahoo money dat sure pass is NEPA BILLS



Now i realised dat we are paying for sunshine

OK, we are in together me that hardly get 3hrs per day.

Meter sef is 50k...

GOD DEY LOOK US

Dozis:

And what makes you think that your opinion matters??

...and you have to quote our post leaving the 25 posts before you?
You singled out our post only!

really matter to una Children of wharever o!

Na una go tire las las as una don dey tire one by one already
Make una go ask una ogas from 5 years ago who tire las las.....

post=93458615:




Meaning you don't even have 4 Naira to pay?!

Who do una wailer dis kind tin nah.
Must you wail continously like dis?

Even on top 4 Naira?
Make God helep una o.

Meanwhile, You worship Baba OBJ that 10 BILLION DOLLARS for power disappeared under him without us seeing the power for 8 years!
That one did not scam you o!

Poverty die die die.......
Amen!

I wonder how senseless u are, b4 u no it that 4naira will go up

.

Maxymilliano:
I just pity the field workers, hopefully, people won't transfer aggression to them, in the face of government insensitivity to the plight of the common man

you are right

ggirl4real:
Provide the electricity first, Nigerians are willing to pay.

We can't continue paying for darkness.

Stop estimated billings.

Provide pre-paid meters to all households in Nigeria at subsidized rates.

Not all Nigerians are willing to pay. Many are ready to circumvent just to enjoy the benefits