Electricity tariff cut not for residential consumers – NERC

The Nigerian Electricity Regulatory Commission on Thursday declared that most residential customers would not enjoy the benefits of the recent cut in electricity tariff.

According to the commission, most residential electricity consumers in the R1 and R2 categories did not experience any increase in tariff when electricity rates were hiked on January 1, 2015.

It said the increase on the first day of the year only affected industrial, commercial and high-end residential consumers, stressing that most people in the R1 and R2 categories would begin to pay increased tariffs from July 1, 2015.

The Chairman, NERC, Dr. Sam Amadi, gave the clarification at a meeting with members of the Electricity Consumer Association of Nigeria.

Amadi said, “Majority of the residential customers in the R2 and R1 categories did not experience the January 1, 2015 increase in tariff. They will not also see any reversal or reduction in tariff as the industrial, commercial and high-end residential consumers whose tariff were increased.

“It was a reduction based on the impact collection loss had on the tariff.”

NERC had two weeks ago announced the reduction in tariff by 50 per cent following what it called “bombardment of complaints” from customers who decried the increase that was announced earlier this year.

The NERC boss stated that the tariff reduction for the industrial, commercial and high-end residential electricity customers (R3 consumers), would become effective from this month.

“We have always tried to listen to complaints from consumers and operators alike and we carry out tariff reviews when necessary. We are a responsive and accountable regulator,” he said.

According to Amadi, the reduction in tariff was a decision reached in line with the commission’s business rules after consideration was given to protests from the Manufacturers Association of Nigeria on the implication of the January 1, 2015 increase on their businesses.

He stressed that NERC took the action because it saw that there was merit in the argument put forward by MAN that the increase would impact their businesses.

The President, ECAN, Mr. Chijioke James, said the group was at the commission to endorse the recent tariff reduction for some classes of electricity consumers.

“We have been very critical of NERC to see that consumers enjoy power supply, but it will be bad to see that a government agency has done something right and we fail to commend it openly,” he said.

James observed that ECAN needed the support of agencies like NERC and the Consumer Protection Council, among others, to enlighten consumers on the dangers of patronising sellers of fake electrical equipment as well as the need to imbibe energy conservation practices.

He stated that consumers expected improvement in response rate to complaints from service providers like the electricity distribution companies.

“We use this opportunity to urge NERC to encourage electricity distribution companies to improve their response rate in resolving complaints from consumers nationwide,” he added.