NERC insists New Electricity Tariff Must Take-off February 1

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Despite criticism and opposition that have trailed the recent announcement of new electricity tariff across the nation, the Nigerian Electricity Regulatory Commission (NERC), yesterday, insisted on the enforcement of the new tariff.

According to the commission’s Head of Public Affairs, Dr. Usman Abba-Arabi, in a statement, “NERC wishes to reiterate that the take off date of the new electricity tariff (MYTO 2015) still remains February 1, 2016 and it is in view of this that the commission has told distribution companies to abide by its directive not to connect new customers without first providing them meters. We wish to state that at no time did the commission change the date of the take off of the new tariff.”

According to the statement, the removal of fixed charge under the new tariff regime “was in response to electricity consumers’ complaints and a measure to ensure electricity distribution companies improve on service delivery as their income is dependent on the quantity of electricity used by their customers.”

The clearance is coming on the heels of recent comment from the Senate and House of Representatives that National Assembly has not approved the new tariff charge.

The commission said it would continue to engage stakeholders including members of the National Assembly (NASS) to address their concerns on the new tariff regime. “NERC holds National Assembly in high esteem and we are sure that both institutions are working to ensure that the National and consumer interests are protected.”

The statement explained that there were inbuilt consumer protection mechanisms and incentives for improved service delivery by the DISCOs and fair return on investment in the new Tariff Order.

The commission said implementing this cost reflective tariff will effectively monitor and enforce all service delivery agreements in the new tariff order.

It said the new Tariff Order, aside from eliminating fixed charge, has a robust mechanism to ensure that electricity distribution companies fully meter their consumers and eliminate “crazy” billing within one year.

The Commission said it has the capacity to continue to carry out its mandate until the reconstitution of the Commissioners.

Consequently, in the interim, an acting head of NERC, in the person of Dr. Anthony Akah, a Certified Regulation Specialist, has been appointed to coordinate the activities of the Commission.

Prior to his appointment, Akah was the General Manager, Consumers Affairs and most senior staff of the Commission.

The Commission said it is currently staffed and well positioned to carry out its responsibilities effectively and efficiently especially as it commences the implementation of the new tariff pending the appointment of a new set of commissioners.

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