Nigeria’s New Electricity Tariff to Begin February 1st

Nigeria’s New Electricity Tariff to Begin February 1st

Nigeria’s Electricity Regulatory Committee (NERC) will begin the implementation of a new electricity tariff on February 1st, Vanguard reports.  In a statement, the commission said that in implementing a “cost reflective tariff,” it would effectively monitor and enforce all service delivery agreements in the new tariff order.

In addition to better regulated prices, the new law will require electricity distribution companies (DISCOs) to install meters for all new customers.

NERC Head, Dr. Anthony Akah, stated that the new tariff eliminates fixed charges, as a response to electricity consumers’ complaints. “The new tariff, besides eliminating fixed charge, has a robust mechanism to ensure that DISCOs fully meter their consumers and eliminate ‘crazy’ billing within one year.’’  According to the statement, the DISCOs have inbuilt consumer protection mechanisms and incentives for improved service delivery as well as fair return on investment in the new tariff order.

The statement added that the measure was to ensure that electricity distribution companies improved on service delivery, as revenues are more closely reliant on the quantity of electricity used by their customers.  The NERC will continue to engage Nigeria’s National Assembly (NASS) and address its concerns on the new tariff scheme: “NERC holds NASS in high esteem and assures that both institutions are working to ensure that national and consumer interests are protected,” the statement said.

Relatedly, All Africa reports that Nigeria requires an electricity capacity of 160,000MW, which the countries’ DISCOs may not be prepared to meet. There are also many who believe Nigeria’s goal of metering all Nigerian electricity consumers by the end of 2016 to be unrealistic.


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