Hi nairalander, †ђξ first time I paid for my PHCN bill I was given over 250 energy units for 2000naira but recently I discovered that for 2000naira I was given 67.58 energy units. Is this happening to you as well? or what? I need some answers please.

Bros don't mind them. Before they increased the tarrif on 1st june, 1 energy unit was N7.30k and you pay fixed charge of N75 only.
Now, 1 energy unit is N12.45k and fiexd charge is now N500 and you must pay the fixed charge every month whehter you recharge or not, meaning that if you have enough energy units to last you for about two months, on the 3rd month when you want to recharge, you must pay for the previous two months you didn't recharge ( ie 1000) and still pay N500 for the third month aside the money you'll use to buy your energy units.

My brothers where are we going to

I have been taking the issue of the fixed charge thing with @NERCNG on twitter. After questioning them for some months they replied yesterday.

Please see their response below on the Fixed charge...We should not allow this to happen because it is an extortion.

Companies do not directly charge their fixed cost or variable cost to their customers independently.

They deduct it from their total sales which in this case is their service charge for services not well rendered.

Would need Management Accountants to help out on this.

Follow @NERCNG on twitter and add your voice against fixed charge.

I see it as a direct fraud against Nigerians.

Please oo, they are killing us!! Labour, CLO where are you oo

Don't wait for CLO or labour when you can make your voice heard directly.

Tweet your complains to @NERCNG.

@eleven

That's a nice one...

Prepaid meter is a scam

A country where it gov sees her ppl MARKET,, what do u expect... Gej to investors: (nigeria is a market. Is a place were u invest and get a gud return) enjoy ur fresh air brothers!

SOmeone plzzzzzzzzzzzzzz take them to court

[color=#990000][/color] after paying 22000 bucks for d meter and the units I buy weekly isn't enough, I now pa 500bucks every month to these goons so dat ђat will happen. What kind of life is dis? GEJ perform naaaa.

lekzwyc: Hi nairalander, †ђξ first time I paid for my PHCN bill I was given over 250 energy units for 2000naira but recently I discovered that for 2000naira I noticed 67.58 energy units. Is this happening to you as well or what. I need some answers please.

Can anyone tell me where I can locate barrister Robert Igbinedon? his free legal service is needed here

I don't know why PHCN is doing this. Firstly, it was the Maintenance Fee which was eventually scrapped... Now, the monthly FC has been 'upgraded' to 500naira? What for?

Same thing happened to me too o!Yt electricity is so bad!We r being robbed blind!

What PHCN is doing is in line with the multi year tariff order 2 (MYTO 2). It is designed to make our electricity tariffs cost reflective and attractive for private sector investments. It's part of the Transformation agenda of President Goodluck Jonathan.

The idea is that the old rate of N7.00/ kwh is far below the actual cost of production thus forcing govt to subsidize heavily and scaring away private investors from investing as it is difficult to recoup investments at the prevailing fixed tariff. On june 1, govt increased the tariffs upwards to N11.00 for R2 customers.

At this juncture, it is important to clarify the categorization of customers under the MYTO reforms. Poor rural dwellers/ low income areas who consume less than 50 kwh a month are categorized as R1. The middle class which is where majority of Nigerians fall under are categorized as R2. While the high brow districts like Maitama or Asokoro in Abuja or Bannana Island in Lagos are categorized as R3.

It is important to note that govt still set aside 100 billion to subsidize this tariffs for R1 and R2 consumers in 2012 and 2013. Instead of the initial N7/kwh paid by all under the old tariff order, R1 will now pay less at 4 kwh. R2 will pay N11.kwh while R3 will pay as much as N32 kwh. The R1 consumers will be exempted from all fixed charges and meter maintenance while R2 and 3 will pay a fixed charge of N500 monthly. This they say is production charges for generating power to the grid. Its like a sort of service charge which must be paid as far as you re connected to the national grid. The NERC maintains that fixed charges are paid all over the world and that of Nigeria ranks among the lowest.
These are part of the ongoing reforms in the power sector and from all indications, it's yielding fruits as many big companies are now indicating interest to participate in our distribution process because of the new tariffs.

It's now very clear that this government is clueless,if not how can the economic grow when you are making the basic raw material for production expensive.The extract enumerated the importance of affordable electricity tariffs to a holistic economic growth

Access to cheap electricity

...encourages the presence of agricultural-processing industries, which benefits the local economy.

...preserves harvests and fish via refrigeration, which allows farmers and fishermen to sell their products when prices are high.

...powers research laboratories and artificial-insemination projects for farmers.

...increases business opportunities and allows businesses to extend hours. Examples include welding, battery charging, and electronic repair.

...enhances services such as rural market centers, schools, health centers, water pumps, and government administration offices.

...benefits school attendance and performance in many ways, such as powering equipment and lighting the night for longer study hours.

...powers cells phones for social or business communications; in 2006, 200 million people in Africa used cell phones. That’s 22% of the population. Of those users, 60 million were new. In comparison, only 3% used telephone lines, and 5% were internet users.(MGR-2008)

Sources, Links and Downloads

United Nations: Economic and Social Council: Economic Commission for Africa: 2009
(UN-ESC)

United Nations: Millenn

dedeike: What PHCN is doing is in line with the multi year tariff order 2 (MYTO 2). It is designed to make our electricity tariffs cost reflective and attractive for private sector investments. It's part of the Transformation agenda of President Goodluck Jonathan.

The idea is that the old rate of N7.00/ kwh is far below the actual cost of production thus forcing govt to subsidize heavily and scaring away private investors from investing as it is difficult to recoup investments at the prevailing fixed tariff. On june 1, govt increased the tariffs upwards to N11.00 for R2 customers.

At this juncture, it is important to clarify the categorization of customers under the MYTO reforms. Poor rural dwellers/ low income areas who consume less than 50 kwh a month are categorized as R1. The middle class which is where majority of Nigerians fall under are categorized as R2. While the high brow districts like Maitama or Asokoro in Abuja or Bannana Island in Lagos are categorized as R3.

It is important to note that govt still set aside 100 billion to subsidize this tariffs for R1 and R2 consumers in 2012 and 2013. Instead of the initial N7/kwh paid by all under the old tariff order, R1 will now pay less at 4 kwh. R2 will pay N11.kwh while R3 will pay as much as N32 kwh. The R1 consumers will be exempted from all fixed charges and meter maintenance while R2 and 3 will pay a fixed charge of N500 monthly. This they say is production charges for generating power to the grid. Its like a sort of service charge which must be paid as far as you re connected to the national grid. The NERC maintains that fixed charges are paid all over the world and that of Nigeria ranks among the lowest.
These are part of the ongoing reforms in the power sector and from all indications, it's yielding fruits as many big companies are now indicating interest to participate in our distribution process because of the new tariffs.

are u one of them?

This means invariably that even if you have a pre-paid meter , and you have not use electricity for a month, you line will still be cut for debt.

Aside d fact dat power generation is inadequate, distribution is anoda problem whose causes vary frm vandalism, theft,malfunction and inadequate transformers, etc. If d government really want a transformation in dis sector, fixed charges hav 2 b abolished. Although, power units can b made as high as it will b adequate 2 attract investors and also reasonable, so dat d investors know dat they can only make their money wen power is being utilised, so therefore, wen ever there is a fault, they will as a matter of urgency make repAirs and provisions of transformers will b done rapidly. But wit d fixed price, an investor is will only made to gather money not deserved several times especially wen power is not supplied at all, dis will not encourage efficiency on d part of d investors because they already know, distribution or not. They still hav moni 2 make. And on d part of d consumers, being charged unfairly, especially in situations where u rarely get power 2 use and u still hav 2 pay some moni as fixed charges, will promote vandalism and all sort of malpractices jst 2 make up 4 d unfairness, even though its nt justifiable. Then. Government will yet fail in achieving its goals, but perhaps dis tactics by government may jst b 2 enrich some of its allies.

dedeike: What PHCN is doing is in line with the multi year tariff order 2 (MYTO 2). It is designed to make our electricity tariffs cost reflective and attractive for private sector investments. It's part of the Transformation agenda of President Goodluck Jonathan.

The idea is that the old rate of N7.00/ kwh is far below the actual cost of production thus forcing govt to subsidize heavily and scaring away private investors from investing as it is difficult to recoup investments at the prevailing fixed tariff. On june 1, govt increased the tariffs upwards to N11.00 for R2 customers.

At this juncture, it is important to clarify the categorization of customers under the MYTO reforms. Poor rural dwellers/ low income areas who consume less than 50 kwh a month are categorized as R1. The middle class which is where majority of Nigerians fall under are categorized as R2. While the high brow districts like Maitama or Asokoro in Abuja or Bannana Island in Lagos are categorized as R3.

It is important to note that govt still set aside 100 billion to subsidize this tariffs for R1 and R2 consumers in 2012 and 2013. Instead of the initial N7/kwh paid by all under the old tariff order, R1 will now pay less at 4 kwh. R2 will pay N11.kwh while R3 will pay as much as N32 kwh. The R1 consumers will be exempted from all fixed charges and meter maintenance while R2 and 3 will pay a fixed charge of N500 monthly. This they say is production charges for generating power to the grid. Its like a sort of service charge which must be paid as far as you re connected to the national grid. The NERC maintains that fixed charges are paid all over the world and that of Nigeria ranks among the lowest.
These are part of the ongoing reforms in the power sector and from all indications, it's yielding fruits as many big companies are now indicating interest to participate in our distribution process because of the new tariffs.

You well so?

the charge is just a fraud! How can you charge me for service not rendered? The charge IMO should have been harmonized with the tarrif so that, consumers won't have to pay any mumu charges when energy is not consumed. If I don't have any reason to buy energy or use power, why should I pay their mumu charge? For youe house now, you get light? LOL

Why is that president from south of nigeria always perform bad?it is another failed project of mr president.

dedeike: What PHCN is doing is in line with the multi year tariff order 2 (MYTO 2). It is designed to make our electricity tariffs cost reflective and attractive for private sector investments. It's part of the Transformation agenda of President Goodluck Jonathan.

The idea is that the old rate of N7.00/ kwh is far below the actual cost of production thus forcing govt to subsidize heavily and scaring away private investors from investing as it is difficult to recoup investments at the prevailing fixed tariff. On june 1, govt increased the tariffs upwards to N11.00 for R2 customers.

At this juncture, it is important to clarify the categorization of customers under the MYTO reforms. Poor rural dwellers/ low income areas who consume less than 50 kwh a month are categorized as R1. The middle class which is where majority of Nigerians fall under are categorized as R2. While the high brow districts like Maitama or Asokoro in Abuja or Bannana Island in Lagos are categorized as R3.

It is important to note that govt still set aside 100 billion to subsidize this tariffs for R1 and R2 consumers in 2012 and 2013. Instead of the initial N7/kwh paid by all under the old tariff order, R1 will now pay less at 4 kwh. R2 will pay N11.kwh while R3 will pay as much as N32 kwh. The R1 consumers will be exempted from all fixed charges and meter maintenance while R2 and 3 will pay a fixed charge of N500 monthly. This they say is production charges for generating power to the grid. Its like a sort of service charge which must be paid as far as you re connected to the national grid. The NERC maintains that fixed charges are paid all over the world and that of Nigeria ranks among the lowest.
These are part of the ongoing reforms in the power sector and from all indications, it's yielding fruits as many big companies are now indicating interest to participate in our distribution process because of the new tariffs.

I beleive our government have agents on Nairaland to convince pple with their scam/face explanation

adekennis:


I beleive our government have agents on Nairaland to convince pple with their scam/face explanation

Any good mathematician in the house ? Please help calculate the percentage increment from #75 to #500 per month fixed access charge and the basis for the increment should be explain to us.Why can a government that has the interest of his citizens not chose from the various ways of attracting investors, but would rather chose that one that would further taxed his citizenry to to death

The boys are not smiling

OlowoTee: I don't know why PHCN is doing this. Firstly, it was the Maintenance Fee which was eventually scrapped... Now, the monthly FC has been 'upgraded' to 500naira? What for?

baby it ws a directive frm d govt nt PHCN.

PHCN (Punishment & Hardship Company for Nigerians) 10 times corrupt than Nigeria Police & Nigeria Custom Service, second to NNPC & PPPRA. DOOMED!!!

Just wait till people recieve first bill after the commencement of new tariff. What I discovered was that most of the houses use R2 meters, so the issue of consumers with R1 meters paying less doesn't benefit anybody. Why should a government of the people say poor citizens be paying for what they do not use? Infact, this new tariff will attract new investors but will not result in improved electricity. Because, energy companies know that whether they provide electricity or not, 500naira fixed charge is there for them every month. I'm tired of this administration.

tayejay: Aside d fact dat power generation is inadequate, distribution is anoda problem whose causes vary frm vandalism, theft,malfunction and inadequate transformers, etc. If d government really want a transformation in dis sector, fixed charges hav 2 b abolished. Although, power units can b made as high as it will b adequate 2 attract investors and also reasonable, so dat d investors know dat they can only make their money wen power is being utilised, so therefore, wen ever there is a fault, they will as a matter of urgency make repAirs and provisions of transformers will b done rapidly. [b]But wit d fixed price, an investor is will only made to gather money not deserved several times especially wen power is not supplied at all, [/b]dis will not encourage efficiency on d part of d investors because they already know, distribution or not. They still hav moni 2 make. And on d part of d consumers, being charged unfairly, especially in situations where u rarely get power 2 use and u still hav 2 pay some moni as fixed charges, will promote vandalism and all sort of malpractices jst 2 make up 4 d unfairness, even though its nt justifiable. Then. Government will yet fail in achieving its goals, but perhaps dis tactics by government may jst b 2 enrich some of its allies.

Men, that's a nice investment option . Connect people to the grid and collect my cool N500 bucks monthly.

lekzwyc: Hi nairalander, †ђξ first time I paid for my PHCN bill I was given over 250 energy units for 2000naira but recently I discovered that for 2000naira I was given 67.58 energy units. Is this happening to you as well? or what? I need some answers please.

I used to think that i am the only one in this absurdity, it happened to me and I tweeted about it and was given the same explanation. I think we need to raise a forum here on NL to have the signature of all everyone interested, to call on CLO and Labour to intervene in this issue or we get a good attorney to sue PHCN and NERC to court. We need to do this and get a court injunction stopping PHCN from exploiting Nigerians. Increasing fixed charge from 75 naira to 500 naira is far too much, it is more than 400% increase in cost which is not obtainable anywhere in this world.

I am in if you all are ready to fight this matter, this exploitation must stop now.

dedeike: What PHCN is doing is in line with the multi year tariff order 2 (MYTO 2). It is designed to make our electricity tariffs cost reflective and attractive for private sector investments. It's part of the Transformation agenda of President Goodluck Jonathan.

The idea is that the old rate of N7.00/ kwh is far below the actual cost of production thus forcing govt to subsidize heavily and scaring away private investors from investing as it is difficult to recoup investments at the prevailing fixed tariff. On june 1, govt increased the tariffs upwards to N11.00 for R2 customers.

At this juncture, it is important to clarify the categorization of customers under the MYTO reforms. Poor rural dwellers/ low income areas who consume less than 50 kwh a month are categorized as R1. The middle class which is where majority of Nigerians fall under are categorized as R2. While the high brow districts like Maitama or Asokoro in Abuja or Bannana Island in Lagos are categorized as R3.

It is important to note that govt still set aside 100 billion to subsidize this tariffs for R1 and R2 consumers in 2012 and 2013. Instead of the initial N7/kwh paid by all under the old tariff order, R1 will now pay less at 4 kwh. R2 will pay N11.kwh while R3 will pay as much as N32 kwh. The R1 consumers will be exempted from all fixed charges and meter maintenance while R2 and 3 will pay a fixed charge of N500 monthly. This they say is production charges for generating power to the grid. Its like a sort of service charge which must be paid as far as you re connected to the national grid. The NERC maintains that fixed charges are paid all over the world and that of Nigeria ranks among the lowest.
These are part of the ongoing reforms in the power sector and from all indications, it's yielding fruits as many big companies are now indicating interest to participate in our distribution process because of the new tariffs.

Are you sure you're normal?!
Power sector reforms cannot be said to be 'yielding fruit' because 'big companies' are indicating interest. It can only be said to be yielding fruit when the average citizen gets at least 20 hours of power daily. Everything else is the same hot air and lies this corrupt and incompetent Government has been feeding us.

Oya, explain away the fixed charge of N500 even with the price increase.