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Tag: NERC

  • 2021 budget: Reps threaten to delete NERC’s N2bn request for office furniture

    2021 budget: Reps threaten to delete NERC’s N2bn request for office furniture

    …say it lacks contractual details

    The House of Representatives on Wednesday threatened to delete Nigeria Electricity Regulatory Commission, (NERC), N2 billion request in the 2021 budget, to partition and furnish its headquarters in Abuja.

    Chairman of the Commission, James Momoh disclosed this when he appeared before the House of Representatives Committee on Power, to defend the Commission’s 2021 budget proposal.

    Momoh said the partitioning and furnishing of the eight-floor headquarters building became necessary to make the building befitting and habitable after it was acquired.

    According to him, works on the building has been ongoing, which made the Commission to propose fundings for it in the 2020 and 2021 budges.

    He told the Committee that the Commission was unable to spend all the money released to it for the project in the 2020 budget because of the COVID–19 pandemic.

    The committee therefore demanded to know the total contract sum to complete the partitioning and furnishing of the office, but the Commission was unable to provide same.

    The committee therefore expressed worries that the Commission was seeking N2billion to partition and furnish office, in 2021 budget, but could not say what the contract sum was.

    Consequently, Aliyu Magaji, Chairman of the Committee, threatened to delete the request from the 2021 budget proposal.

    Magaji said: “If you don’t have the contract sum we will delete it from the budget. You have only one line item and you came unprepared. So you should go back and bring the total contract sum.”

  • Nigerians to receive high electricity bills from November

    Nigerians to receive high electricity bills from November

    After weeks of deliberations between the federal government and labour unions, electricity distribution companies in the country have resumed implementation of the earlier suspended service reflective tariff.

    TheNewsGuru.com (TNG) reports the electricity distribution companies started informing customers that with effect from 1st November 2020, the revised service reflective tariff would come into force as approved by the Nigerian Electricity Regulatory Commission (NERC).

    Already, customers on the pre-paid platform have started experiencing the revised tariff after vending, starting from November 1st.

    According to the Abuja Electricity Distribution Company (AEDC), the revised tariff will reflect in the bills for customers on the postpaid platform when they receive their electricity bill.

    TNG reports the revised service reflective tariff is divided into 5 Bands and based on hours of supply to the customers. While customers on Bands D & E have their tariff frozen, those on Bands A, B & C will see some level of reduction in their unit as they vend.

    With the revised tariff regime, Non-MD and MD customers in Band A, with a minimum of 20 hours daily will now pay N53.48Kwh, N49.27Kwh and N48.84Kwh rates respectively, while Band B customers with minimum of 16 hours daily will be charged N52.31, N48.33 and N48.33/Kwh.

    In the same vein, Band C customers with a minimum of 12 hours daily will be charged N46.66, N44.05, and N44.05Kwh. The revised rates approved by NERC gave a slight reduction while there is no change in the rates for band D and E till the end of 2020.

    However, customers in Bands D and E, with a minimum of eight hours and four hours power supply per day, respectively, are not impacted by the tariff revision. Their SBT tariffs have been frozen and consequently, they will continue to be charged the old tariff prior to the introduction of the service reflective tariff.

    Recall that the electricity distribution companies had suspended the new tariff regime after a meeting between labour unions and the federal government.

    The electricity distribution companies complied with the order from NERC for the suspension of the revised tariff rates for 5 weeks.

    The suspension was based on a communique issued after a meeting between the federal government and the labour unions requesting consultations and finalization of negotiations by both parties on the tariff implementation.

  • NERC suspends electricity tariff hike for 2 weeks

    NERC suspends electricity tariff hike for 2 weeks

    The Nigerian Electricity Regulatory Commission(NERC) has ordered the 11 Electricity Distribution Companies (DISCOs) to suspend the Sept. 1 tariff increase for 14 days.

    The commission’s suspension order of the Multi Year Tariff Order (MYTO) 2020 signed by Prof James Momoh, NERC’s Chairman was released on its web site on Wednesday.

    NERC suspension followed a joint communique issued by the Federal Government and the labour unions.

    The Federal Government agreed that the recent review in electricity tariffs would be suspended by the commission for a period of 14 days to further consultations and finalisation of negotiations between the parties.

    The order by NERC said that from Sept 28 to Oct 11 the DisCos must revert all charges to the tariff existing as of Aug 31.

    “This means that for the next two weeks, electricity consumers having power above 12 hours who were affected by the over 100 per cent tariff hike would revert to their old charges.

    It said as empowered by Section 33 of the Electric Power Sector Reform Act, EPSRA 2005, the Minister of Power, Sale Mamman can issue such directive to NERC.

    The Secretary to the Government of the Federation, Boss Mustapha and Mamman were among the team that met with the labour unions.

  • NERC orders DisCos to suspend electricity tariff hike

    NERC orders DisCos to suspend electricity tariff hike

    The Nigerian Electricity Regulatory Commission (NERC) has ordered the 11 Electricity Distribution Companies (DISCOs) to suspend the Sept. 1 tariff increase for 14 days.

    The suspension is in line with the agreement reached with the organised Labour on the suspension of strike over the hike in electricity tariff and increase in pump price of petrol.

    The commission’s suspension order of the Multi-Year Tariff Order (MYTO) 2020 signed by Prof James Momoh, NERC’s Chairman was released on its website on Wednesday.

    The Federal Government agreed that the recent review in electricity tariffs would be suspended by the commission for a period of 14 days to further consultations and finalization of negotiations between the parties.

    The order by NERC said that from Sept 28 to Oct 11 the DisCos must revert all charges to the tariff existing as of Aug 31.

    “This means that for the next two weeks, electricity consumers having power above 12 hours who were affected by the over 100 percent tariff hike would revert to their old charges.

    It said as empowered by Section 33 of the Electric Power Sector Reform Act, EPSRA 2005, the Minister of Power, Sale Mamman can issue such directive to NERC.

    The Secretary to the Government of the Federation, Boss Mustapha, and Mamman were among the team that met with the labour unions.

  • No tariff increase for customers enjoying less than 12 hours electricity daily – NERC

    No tariff increase for customers enjoying less than 12 hours electricity daily – NERC

    The Nigerian Electricity Regulatory Commission (NERC) on Friday insisted that electricity Distribution Companies (DisCos) must not increase tariffs of customers enjoying less than 12 hours of power supply daily.
    Mr Dafe Akpeneye, NERC Commissioner, Legal Licensing and Compliance, made the clarification during the regulatory agency’s online town hall meeting with customers on the new electricity tariff regime.
    The News Agency of Nigeria (NAN) reports that the DisCos had on Sept. 1 announced the implementation of new Service Reflective Tariff Plan (SRT) across their franchise areas.
    The DisCos said the classes of customers had been categorised into five bands with bands D and E who were not enjoying 12 hours daily power supply not affected by the new tariff plan.
    However, Akpeneye, who was responding to claims by some customers that the DisCos were not adhering to the increment terms, maintained that those below 12 hours supply daily should not experience any increment.
    He explained that the hours and bands were decided by the commission after consultations but customers were assigned to the bands by the DisCos.
    Akpeneye said:”Anyone who is enjoying less than 12 hours of electricity must not have their tariffs increased.
    “Customers who receive electricity service below the band they have been assigned can have the DisCos move them to the actual band of electricity service they receive.
    “Unhappy? Contest the band classification you have been assigned.”
    He said in order to protect unmetered customers from exploitation by the DisCos, NERC came up with “Parity with Neighbours”.
    “This is the principle we are applying with unmetered customers. It basically means as an unmetered customer, you cannot be charged more than your metered neighbour,”the commissioner said.
    Akpeneye also disclosed that NERC had mandated all DisCos to invest in infrastructure in order to increase power supply to customers.
  • Proposed electricity tariff won’t affect poor people – NERC

    Proposed electricity tariff won’t affect poor people – NERC

    The Nigeria Electricity Regulatory Commission (NERC) Monday said that the proposed tariff increase that has been suspended will not affect poor electricity customers when it takes effect.

    In his presentation to the Senate Committee on Power at the commission’s head office in Abuja, the NERC chairman, Prof. James Momoh told the lawmakers who were in their oversight function that a mechanism has been put in place to absorb the masses of the adverse impacts of the hike.

    Speaking with reporters after the event, he said “It is not going to affect the poor. We will make sure that the downtrodden and the people you feel for at the moment will not be affected by any increase we will be bringing forth.

    “It will be based on the hours of service and the quality of power available there. We don’t want the poor to subsidize the payment of the rich. In other words, we must make sure that the poor are not sacrificed in the process of tariff increase.”

    Meanwhile, the committee chairman, Senator Gabriel Suswan urged the commission to handle the tariff increase with caution because of the economic hardship it could inflict on the people.

    He told Momoh to the Senate is opposed to the proposed increase in tariff but having viewed that most Nigerians cannot even feed themselves at the moment owing to the impact of the COVID-19 pandemic, the commission has “to make haste slowly” about the tariff.

    Explaining what “to make haste slowly” meant, the lawmaker said the NERC has reviewed the tariff but the economy has contracted by over 2 percent due to COVID.

    “By their own Programme, they (NERC) is supposed to activated tariff increase by 1st of July.

    We met with them at the level of National Assembly and appealed that given the circumstances of the COVID they should tally awhile let Nigerians a beat recover from the economic shocks before they can activate that tariff.”

    According to him, the commission suspended the hike because of the pleas of the Senate. He insists at the suspend the hike does not rule out its eventual increase.

    Suswan said the liquidity of the sector depends on a cost-reflective tariff.

    The lawmaker said the commission is presently supporting the National Assembly for the enactment of the Electricity Act since the one in force at the moment was pre privatization of the sector.

    The new bill, said the committee chairman, is expected to be presented to the National Assembly before August this year.

    The lawmaker said “these have gone beyond privatization. There has to be an electricity act that will set the framework that touches on energy theft: how people will be sanctioned. It gives potential investors the comfort to come here and invest knowing that legal framework protects them. NERC is supporting us financially to put that act together. By August we should be able to put that act before the National Assembly.”

  • Court overrules NERC on IBEDC board removal, nullifies commission’s regulation

    Court overrules NERC on IBEDC board removal, nullifies commission’s regulation

    An Abuja Federal High Court on Friday set aside the order of the Nigerian Electricity Regulatory Commission, (NERC) removing the Tunde Ayeni led Board of Directors of the Ibadan Electricity Distribution Company, IBEDC.

    In a landmark judgement, Justice Taiwo O. Taiwo of Abuja Federal High Court agreed with the submissions of Muyiwa Balogun Esq., Partner at Olaniwun Ajayi LP, who represented IBEDC and its Directors, that the appointment and removal of Directors must be in accordance with the provisions of Companies and Allied Matters Act, CAMA and the Electric Power Sector Reform Act, 2005 (ESPRA).

    Specifically, the court held that there is nothing in ESPRA, NERC’s enabling law, which permits it, NERC, to make the removal order.

    It will be recalled that NERC, in an order of 19th June 2018 directed IBEDC to commence the process of dissolution of its Board within 21 days period, citing alleged delay in the repayment of some loans by IBEDC investors.

    The IBEDC directors, led by Tunde Ayeni, however, responded swiftly to the allegation, stating that it has lived up to its financial commitments to IBEDC, disclosing that as at Thursday 14 June 2018, it had paid its monthly commitment up to date.

    In a bid to resolve the matter once and for all, the aggrieved directors sued NERC for its decision to suspend them from the Board of IBEDC.

    In today’s ruling, Justice Taiwo further held that Section 18 of the Electricity Industry (Enforcement) Regulation 2014, which purports to give NERC the powers to remove directors is ultra vires, as it goes beyond the remit of ESPRA. The court, therefore nullified Section 18 of the Regulation for being inconsistent with ESPRA.

    In addition, the court held that NERC cannot be an umpire in it’s own case, and any allegations of fraud must be adjudged, not by NERC, but by a competent court.

    Analysts have described the ruling as a landmark victory, not just for the Tunde Ayeni led Board of IBEDC, but for investors in the power sector who were taken aback and found the decision of NERC rash and draconian. Many had contended then that such decision by a regulator was capable of discouraging both local and foreign investors from injecting the much needed private capital that is required to develop the Nigerian power sector and propel the economy.

  • Ikeja Electric conforms to AEDC, announces new electricity tariff regime

    Ikeja Electric conforms to AEDC, announces new electricity tariff regime

    Ikeja Electric Plc (IE) has conformed to Abuja Electricity Distribution Company (AEDC) and announced the introduction of a new tariff regime known as service reflective tariff.

    TheNewsGuru.com (TNG) understands there will be a marginal increase in the cost of electricity per kWh with the new tariff regime, and IE on Friday, as with AEDC, said it would begin implementation from July 1st.

    The electricity distribution company made the announcement in a statement signed by its Head of Corporate Communications, Mr Felix Ofulue, but the Nigerian Electricity Regulatory Commission (NERC) was yet to respond to enquiry.

    Ofulue said the new tariffs, which are service reflective, are end-user rates to be paid for electricity based on the level of service (including availability and reliability) provided to a cluster of customers.

    He said: “This is in line with our Performance Improvement Plan (PIP) across the entire network in the coming months and years.

    “The different service levels to all categories of electricity consumers will also be accompanied by a change in tariff which has taken into cognisance changes in macroeconomic indices in the country.

    “This will enable all the market players (Generation, Transmission, Distribution and gas suppliers) in the Nigeria Electricity Supply Industry cover cost of their operations and ensure improved service delivery.”

    According to him, the plan is for the sector to gradually make a transition to a full cost-recovery market where the cost of services provided will be fully recovered.

    Ofulue said services were also expected to improve within a very short time in customer service delivery, infrastructural upgrade, metering and technological solutions.

    He, however, said that this would be based on the level of investments that will be attracted, going forward.

    “For the purpose of customer classification, customers will now be categorised into maximum demand customers (MD) and non-maximum demand (Non-MD) customers, and will no longer be the usual residential, commercial and industrial customer classes.

    “All customers have now been clustered into different bands depending on the level of service currently being enjoyed.

    “Customers who are in the higher band currently being provided with good electricity supply will be expected to pay the true costs of the services being enjoyed.

    “Customers who are within the lower band and are not receiving optimal services will be expected to pay a much lower tariff pending improvements in services and the movement to a higher tariff band reflecting improved service delivery, ” he said.

    Ofulue said that IE remained committed to bridging the metering gap and reducing the incidence of estimated bills.

    “In recent times, we have doubled our efforts to realise our objective of metering our unmetered customers within the shortest possible time.

    “We also note that complaints resolution by customers have been a concern in the past but this is set to improve as we move forward with this new tariff regime

    “Lastly, this tariff implementation is subject to the approval of the regulator but it is necessary for performance improvement expected by customers,” the IE spokesman said.

  • Nigerians groan as DisCos introduce new electricity tariff regime

    Nigerians groan as DisCos introduce new electricity tariff regime

    Electricity distribution companies in the country have announced the introduction of a new tariff regime known as service reflective tariff.

    TheNewsGuru.com (TNG) understands there will be a marginal increase in the cost of electricity per kWh with the new tariff regime.

    While other electricity distribution companies in the country are yet to announce date the new tariff regime will begin implementation, the Abuja Electricity Distribution Company (AEDC) has said it would be implementing beginning Wednesday 1st July 2020.

    Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) was yet to respond to enquiry.

    However, AEDC said, “In this new tariff, there will be a marginal increase in the cost of electricity per kWh but it is not all customers that will be immediately affected.

    “The principal benefit of this new tariff is to, among other things, ensure improved service to you our esteemed customers with longer hours of power supply.

    “The new tariff will also help us in the long run to recoup more funds for greater improvement in power supply to our customers”.

    The development has not gone down well with Nigerians; some, who have described the increment as baseless and a way to exploit poor masses.

    “This is an act of wickeness, tariff increase but service is getting worst on daily basis. We keep paying for what we don’t consume,” Olawale Ajiboye lamented.

    On his part, Destiny Idris said the electricity distribution companies need to first improve power supply to users before making new tariff effective.

    “Nigerians have been paying for darkness instead of light. You give flat rate bills to them even when there is no light. You are corrupt by allowing people to pay for light they never see or use,” he stated.

    While Paul Emmy called on National Assembly to rescue the poor masses, Zakariah Irimiya said, “This increment is baseless just a way to exploit poor masses”.

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  • 60% of Electricity Consumers in Nigeria on Estimated Billing – NERC

    60% of Electricity Consumers in Nigeria on Estimated Billing – NERC

    The Nigerian Electricity Regulatory Commission (NERC) has disclosed that almost 60 percent of electricity users in the country are still on estimated billing.

    The commission made this known in the third quarter of 2019 report released recently where it was stated that 5.8 million Nigerians, which represented 59.7 percent of registered consumers, were still getting billed by estimates.

    The report further disclosed that only Abuja and Benin distribution companies had metered more than 50 percent of their registered electricity customers as at the end of September 2019.

    “The metering gap for end-use customers is still a key challenge in the industry. The records of the commission indicate that, of the 9,674,729 registered electricity customers, only 3,895,497 (40.26 percent) have been metered as at the end of the third quarter of 2019.

    “Thus, 59.74 percent of the registered electricity customers are still on estimated billing which has contributed to customer apathy towards payment for electricity.

    “In comparison to the second quarter of 2019, the numbers of registered and metered customers increased by 8.93 percent and 1.65 percent respectively.

    “The increase in registered customer population is due to the on-going customer enumeration exercise by DisCos through which illegal consumers of electricity were brought unto the DisCos’ billing platform,” the commission said.

    Praising the Meter Assets Provider (MAP) scheme, the NERC said it had been essential in rolling out meters to all its unmetered customers.

    The commission said in February, it issued an order to a cap estimated billing by electricity distribution companies to unmetered customers.

    The order, it said, would protect customers from unrealistic billing until a prepaid meter is installed by the DisCos.

    The commission said it was working with the Ministry of Power to set a target for closing the metering gap by December 2021.