NERC approved new Energy Tariff for the Electricity Distribution Companies

The Nigerian Electricity Regulatory Commission (NERC) On Wednesday, approved new energy tariff for the electricity distribution companies (DisCos) in the country.

For each DisCo, the tariffs differ according to customer classification. This piece focuses on the price range for residential customers under the R2 class – the amount they currently pay and what they are expected to pay next. Most residential electricity consumers fall under the R2 class which covers those using single and three phase lines.

According to the

data from the commission, residential customers across the country paid a minimum of N21 to N31 kilowatts per hour (kWh) in 2019. But this would change when the new charges become effective.

Customers under the Abuja DisCo who paid N24.30 kWh currently would pay N31.96 in 2020, an addition of N7.66. However, the rate is projected to climb further to N33.34 by 2021.

For residential customers in the south-east under the Enugu DisCo distribution franchise, there is an addition of N9.28 to their current charge. From the N30.93 they pay presently, the new tariff will see them paying N40.21 kWh.

According to the new tariff for residential customers under Kano DisCo who currently pay N22.50kWh current charge will move up to N33.51 by 2020, which means N11.01 has been added to the old rate.

Even with the addition of just N9.38kWh to the tariff being paid by customers under the Benin DisCo franchise areas, they would be paying the highest amount in the country as the old bill of N31.27kWh would increase to N40.65. It is expected to move up to N42.13 by 2021.

Energy Charges

Residential customers under Eko DisCo who currently vend at N24kWh, will vend at N30.74, a difference of N6.74. For Ibadan Disco, the rate would move from N24.97kWh to N32.49, as N7.52 climbs the former tariff.

For residential customers under the Kaduna DisCo, they would be paying a minimum of N6.69 as an addition to the current electricity rate of N26.37kWh. By 2020, the rate would become N33.06 and N35.05 by 2021.

However, customers of Jos DisCo would cough additional N9.33kWh. From the current rate of N29.81kWh, they would pay N39.14 under the new regime and N48.96 by 2021.

The Port Harcourt DisCo would increase its current charge of N30.23kWh to N39.56kWh in 2020, with further increase to N43.03kWh in 2021.

Yola DisCo would charge N5 above its present rate of N23.25kWh. Hence, its residential customers would pay about N28.19kWh as the new rate. It is projected to jump up to N37.66kWh by 2021.

Of all residential customers in the country, the ones under the Ikeja DisCo would continue to enjoy more goodwill as they would be paying less for electricity consumption in comparison to other DisCos. Currently, the rate is a minimum N21.30kWh. By 2020, it would be N28kWh and N29.68 by 2021.

According to the commission, the provision of cost reflective tariffs is to ensure that prices charged by the DisCos are fair to customers, and are sufficient to allow them operate efficiently to recover the full cost of their activities, including a reasonable return on the capital invested in the business.

● TheCable