The Nigerian Electricity Regulatory Commission (NERC) has announced that from 1 July, 2011, a new tariff regime will come into effect for all electricity consumers in the country.
It is to rise from the current rate of N8.50 to N10 per kilowatt hour (Kw/h).
Electricity supply has, at best, been epileptic in Nigeria as majority of areas gets no electricity for most hours of the day.
NERC Chairman, Dr. Sam Amadi, in a notice to Chief Executive Officers of Electricity Distribution Companies on the take off date of the 1 July, warned them to ensure improved service delivery to their customers.
Amadi also told the chief executive officers to note that the last schedule of the 2008/2013 regime of Multi Year Tariff Order (MYTO) will be applicable at the same time.
According to him, “the marginal increase was approved in 2008 and we have the responsibility to inform the public as part of our commitment to transparency. The commission hereby reminds you of the responsibilities owed to your customers, particularly as regards its guidelines on Customer Complaints Handling, Connection and Disconnection Procedures, Customer Service Standards of Performance and Meter Reading.
“We will be resolute and uncompromising in ensuring compliance and imposing sanctions on chief executive officers and managers of companies that fall short of the required standards,” Amadi stressed.
NERC, in 2008 introduced MYTO to ensure that prices of electricity are predictable and to mobilise the required funds to the industry by attracting needed private sector investments through a tariff system that ensures fair return on investments, while protecting customers against profiteering.
The 11 distribution companies have been directed to submit their audit reports to the regulatory agency at a meeting held earlier with the NERC boss and the chief executive officers of the companies.
The commission had demanded for an audit report of their companies in the last five years for a clear understanding of losses incurred by both the government and private companies.
This would enable NERC arrive at a standard price for the new tariff set for 2012.
A source at NERC explained that the distribution companies have not done any audit in the last five years owing to bureaucratic system at the Power Holding Company of Nigeria headquarter in Abuja.
“We want the review to be credible and all the assumptions underlying the review to be credible as well. We are also to review the Multi-Year-Tariff Order with the CEOs of distribution companies and we find out how the PCAF will be woven into the framework of tariff. We have to develop a framework for the fund,” the source said