Nigerians have criticized the new increase in electricity tariff for electricity distribution companies (DisCos).
Questions bordering on an increase in electricity supply reflecting the increase in tariff have been asked.
For years, Nigerians have lamented the epileptic supply of electricity despite alarming tariffs being paid with no remedy.
The Nigerian Electricity Regulatory Commission (NERC) (NERC), announced the approval for the new tariff in a series of publications tagged ‘2016-2018 minor review of the 2015 multi-year tariff order’ (MYTO) for each DisCo,
The review was published on Wednesday, August 21.
The tariff that will see Nigerians paying more for electricity consumption became effective on Monday, July 1.
“Determine and recognise the historical (2015 2018) tariff deficits pursuant to the objective of resolving the impairment of the financial records of DisCos arising as a consequence of the deficits. “This order has taken into consideration the actual changes in relevant macroeconomic variables and available generation capacity in updating the operating MYTO 2015 Tariff Order for the period January 1, 2016, to December 31, 2018, in line with the provisions of the MYTO Methodology (Amended). Projections were made for macroeconomic variables for the year 2019 and beyond based on best available information. “The commission shall make necessary adjustments to reflect actual values at the time of the next minor review that will take effect on 1 January 2020,” the document read.
The DisCos had earlier complained that its major challenge in the sector was lack of cost-reflective tariff, which they said had also prevented them from investing in their networks. The DisCos in 2018 claimed they were incurring huge losses as they were buying electricity at N80.88 and selling to consumers at N31.50, recording a shortfall of N49.38 per kilowatt.
The tariff increase for each DisCo differs, going by figures in the documents released by commission. Breakdown of the new tariff For Abuja DisCo’s minor review assumptions 2015-2021, NERC stated that the DisCo’s end-user cost reflective tariff from 2017, 2018, 2019, 2020 and 2021 per KWh were N42.81, N46.44, N52.86, N46.02 and N44.29 respectively. The commission, however, stated that the end-user allowed tariff from 2017 to 2019 per kWh was N32.66 in each of the years, while those of 2020 and 2021 were put at N42.46 and N44.21. The difference between what Abuja DisCo’s customers pay currently and what they will pay from next year, going by NERC’s figures, is an increase of N9.8/kWh.
For Eko DisCo, the commission said the end-user cost reflective tariff from 2017, 2018, 2019, 2020 and 2021 per kWh were N39.7, N41.8, N46.1, N39.8 and N39.2, respectively. For the end-user allowed tariff from 2017 to 2019 per kWh, it said this was N28.3 in each of the year, while those of 2020 and 2021 were put at N36.8 and N39.2.
The difference between what Eko Disco customers pay currently and what they will pay from next year is an increase of N8.5/kWh. For Benin DisCo, the commission said the end-user cost reflective tariff from 2017, 2018, 2019, 2020 and 2021 per kWh were N51.37, N54.36, N59.07, N47.61 and N43.79, respectively. It also stated that the end-user allowed tariff from 2017 to 2019 per kWh was N32.50 in each of the years, while those of 2020 and 2021 were put at N42.25 and N43.79. The difference between what BEDC’s customers pay currently and what they will pay from next year is an increase of N9.75/kWh. For Ibadan Disco, the end-user allowed tariffs for 2019, 2020 and 2021 per kWh are N30.6, N39.7 and N44.2, respectively. This implies that by next year, Ibadan DisCo customers will pay more; the difference is an increase of N9.1/kWh in their tariff. For Ikeja DisCo, electricity consumers will have to pay additional N8.2/kWh from next year as the end-user allowed tariffs in the order from NERC put the tariffs for 2019, 2020 and 2021 per kWh at N27.3, N35.5 and N37.1 respectively.
to consumers at N31.50, recording a shortfall of N49.38 per kilowatt. List of cities/towns to find WAEC exam centres in your states The tariff increase for each DisCo differs, going by figures in the documents released by commission. Breakdown of the new tariff For Abuja DisCo’s minor review assumptions 2015-2021, NERC stated that the DisCo’s end-user cost reflective tariff from 2017, 2018, 2019, 2020 and 2021 per KWh were N42.81, N46.44, N52.86, N46.02 and N44.29 respectively. The commission, however, stated that the end-user allowed tariff from 2017 to 2019 per kWh was N32.66 in each of the years, while those of 2020 and 2021 were put at N42.46 and N44.21. The difference between what Abuja DisCo’s customers pay currently and what they will pay from next year, going by NERC’s figures, is an increase of N9.8/kWh. For Eko DisCo, the commission said the end-user cost reflective tariff from 2017, 2018, 2019, 2020 and 2021 per kWh were N39.7, N41.8, N46.1, N39.8 and N39.2, respectively. For the end-user allowed tariff from 2017 to 2019 per kWh, it said this was N28.3 in each of the year, while those of 2020 and 2021 were put at N36.8 and N39.2.
The difference between what Eko Disco customers pay currently and what they will pay from next year is an increase of N8.5/kWh.
For Benin DisCo, the commission said the end-user cost reflective tariff from 2017, 2018, 2019, 2020 and 2021 per kWh were N51.37, N54.36, N59.07, N47.61 and N43.79, respectively. It also stated that the end-user allowed tariff from 2017 to 2019 per kWh was N32.50 in each of the years, while those of 2020 and 2021 were put at N42.25 and N43.79. The difference between what BEDC’s customers pay currently and what they will pay from next year is an increase of N9.75/kWh.
For Ibadan Disco, the end-user allowed tariffs for 2019, 2020 and 2021 per kWh are N30.6, N39.7 and N44.2, respectively. This implies that by next year, Ibadan DisCo customers will pay more; the difference is an increase of N9.1/kWh in their tariff. For Ikeja DisCo, electricity consumers will have to pay additional N8.2/kWh from next year as the end-user allowed tariffs in the order from NERC put the tariffs for 2019, 2020 and 2021 per kWh at N27.3, N35.5 and N37.1 respectively.
Customers under Enugu DisCo will get a tariff increase of N10.6/kWh from 2020. This is because based on figures from the commission, the allowed end-user tariffs for Enugu Disco for 2019, 2020 and 2021 per kWh are N35.3, N45.9 and N41.6, respectively. Customers under Jos DisCo will get a tariff increase of N10.1/kWh from 2020 as they will have to pay N43.9/kWh as against N33.8/kWh which they currently pay.
For Kano DisCo, electricity consumers will pay an increase of N14.6/kWh in the tariff they pay for electricity because NERC increased the end-user allowed tariffs from N30.1/kWh in 2019 to N44.7/kWh in 2020 and N41.8/kWh in 2021.
For Kaduna Disco, customers will be paying an increase of N9/kWh. The end-user allowed tariffs for 2019, 2020 and 2019 per kWh for Kaduna Disco, according to NERC, are N30.3, N39.3 and N41.7, respectively.
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