Electricity: Consumers to pay more with return of Service Reflective Tariff

Ikeja Electric Plc, Abule Egba Business Unit

Electricity consumers in Nigeria will begin to pay more after some weeks of relief as distribution companies reintroduce the revised Service Reflective Tariff (SRT), as approved by the Nigerian Electricity Regulatory Commission NERC.

The implementation of SRT which began on Sept. 1 was suspended on Sept. 28 following a meeting between the Organised Labour and the Federal Government over its implementation.

In a statement on Sunday, the Ikeja Electric Plc (IE) said will begin implementation of the revised tariff as approved by the Nigerian Electricity Regulatory Commission (NERC) effective Nov. 1.

The electricity distribution company made the announcement in a public notice posted on its official Twitter account on Sunday said the revision was further to the consultative review meetings held between the parties concerning the Multi Year Tariff Order 2020 SRT.

The DisCo said: “Under the SRT, the tariff classification is based on quality of service and therefore, divided into 5 Bands (A-E).

“This is measured by the average availability of power supply over a month, interruptions (frequency and duration), voltage levels and other service parameters.

“With the revised tariff regime, Non-MD customers in Band A, with a minimum of 20 hours daily will now pay N51.22/Kwh.

“Band B customers with minimum of 16 hours daily will be charged N46.93/Kwh; while Band C customers with a minimum of 12 hours daily will be charged N37.95/Kwh.

“However, please note that customers in Bands D and E, with minimum of eight hours and four hours per day, respectively, are not impacted by the tariff revision.”

According to the company, the SRT tariffs of the two bands have been frozen, and consequently, they will continue to be charged the old tariff prior to the introduction of the SRT.

It said that prepaid meter customers in Bands A – C, who vend from Nov. 1 would be charged the new tariff while same will be implemented for postpaid customers in these bands during the November billing cycle.

“We want to use this opportunity to solicit the continued support and understanding of our customers as we move forward with this new tariff regime, which will enable the Nigeria Electricity Supply Industry cover cost of their operations and ensure improved service delivery.

“Lastly, we further wish to assure our customers of our commitment to service improvements in customer service delivery, infrastructural upgrade, metering and technological solutions, within the shortest possible time, ” Ikeja Electric said.

In the same vein, the Abuja Electricity Distribution(AEDC) said it will begin the implementation of the revised Service Tariff with effect from Nov.1.

AEDC General Manager, Corporate Communication, Mr Oyebode Fadipe said in a statement in Abuja on Sunday.

“This is to inform our customers that with effect from Nov.1, AEDC has effected a revised Service Reflective Tariff as approved by the regulatory agency,” he said.

Fadipe said that customers on the pre-paid platform will be the first to experience the revised tariff when they vend as from Sunday, Nov. 1.

“While the revised tariff will reflect in the bills for customers on the postpaid platform when they receive their electricity bills.

“The tariff is divided into five bands and based on hours of supply to the customers.

“While customers on bands D and E have their tariff frozen, those on bands A, B and C will see some level of reduction in their tariff as they vend.

” The AEDC assures its customers that it will, in line with the spirit and letter of the service reflective tariff, ensure that all customers receive quality service,” he said.

He said that the AEDC was also committed to the improvement of service to customers in all its franchise area.

“We, however, appeal to customers to please see this tariff regime as an opportunity for them to join hands with AEDC to speed up the process of improving the quality of service in the Nigerian power sector,” he said.
Fadipe said that the table of the payment for the new tariff would soon be released.