The Multi-Year-Tariff Order prepared by the Nigerian
Electricity Regulatory Commission, which was
obtained exclusively by our
correspondent in Abuja on Monday, showed that there would be increases
in electricity tariff every year till 2016.
The tariff schedule showed that consumers would have
to pay higher on two fronts. Every year, the fixed cost will go up.
Similarly, the energy cost or cost per kilowatt hour of electricity will
also go up.
NERC had consistently said that increase in
electricity tariff would be for the short run and that the amount
payable by customers would begin to fall when the country had produced
enough electricity.
However, the tariff structure produced by NERC showed
that the short run would be longer than four years as tariffs would
continue to increase until at least 2016.
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Responding to a text message by our correspondent,
the Executive Chairman, NERC, Dr. Sam Amadi, said he could not predict
the time frame when the tariff would begin to take a downward curve.
“I don’t know. It depends on the quantity of power
available and the rate at which losses are reduced and efficiency
improved,” he said.
Consumers in different parts of the country will also
pay different charges depending on the rating of the distribution zone
where they reside.
It is only very poor urban and rural dwellers that
will pay the same rate throughout the country under the new
dispensation. These categories of consumers will not pay any fixed cost
and their tariff of N4/kWh will not vary for the next five years.
However, R2 customers, the category that majority of
electricity consumers belong, will have to pay more for the fixed and
energy charges.
For R2 customers in Abuja, the fixed charge has been
raised from N75 per month to N500 for 2012. In 2013, this charge will be
raised to N702 per month, going up to N986 in 2014; N1,384 in 2015 and
N1,944 per month in 2016.
This category of consumers is expected to pay
N11.28/kWh of electricity per month beginning from June 1. This will
increase to N12.13 in 2013; N12.74 in 2014; N13.37 in 2015 and N14.04 in
2016.
For R3 consumers in Abuja, the fixed cost has been
raised from N300 per month to N37,527 beginning from June 1, 2012. This
cost will go up to N52,696 per month in 2013; N73,997 per month in 2014;
N103,908 and N145,909 in 2015 and 2016 respectively.
These customers will have to pay an energy cost of
N22.62/kWh from June 1; N22.62 in 2013; N23.75; N24.94 and N26.19 in
2014, 2015 and 2016, respectively.
R2 customers with the Eko Distribution Zone will pay
N500 as fixed cost from June 1, up from the previous N75 per month. In
2013, this cost will go up to N750 per month and N1,125 per month in
2014. It will similarly go up to N1,688 in 2015 and 2016.
This category of customers will pay N13.03/kWh from June 1, 2012, but the rate will subsist till 2016.
R3 customers under the Eko Distribution Zone will pay
N18,764 per month as fixed cost beginning from June 1,up from N300; and
N28,145 in 2013. The cost will go up to N42,218, N46,440 and N51,084 in
2014, 2015 and 2016, respectively.
The energy cost for R3 customers in the zone will be N23.40/kWh from June 1 and the rate will remain in place till 2016.
In the Ikeja Distribution Zone, R2 customers will
begin to pay N500 as fixed cost from June 1, up from N75 per month
previously. In 2013, the cost will go up to N750 per month and N895 per
month in 2014. It will rise to N1,067 and N1,273 per month in 2015 and
2016, respectively.
For this category of consumers, the energy cost will
vary from N12.84/kWh in 2012 to N12.51/kWh in 2013; N12, 89/kWh in 2014;
N13.27/kWh in 2015 and N13.67/kWh in 2016.
R3 customers in the Ikeja zone will pay N17,513 per
month as fixed cost beginning from Friday, up from N300 previously; but
the cost will rise to N26,269 every month in 2013; and N31,332, N37,371
and N44,575 in 2014, 2015 and 2016, respectively.
Customers in this category will have to pay an energy
cost of N21.84/kWh from June 1; N22.50/kWh in 2013; N23.17/kWh in 2014;
N23.87/kWh in 2015; and N24.58 in 2016.
Attempts to get the Minister of Power, Prof. Bart
Nnaji, to speak on the matter failed, but he had at a recent public
forum said it was necessary for the rich to pay more for electricity.
He had said the new tariff would not only increase
the capacity of the government to improve electricity, but also increase
the entire value chain in the electricity industry, including metering.
Source- Punch
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