NERC Directs DisCos to Embark on Mass Metering

In response to media reports that there is an increase in tariffs for Nigerians, NERC has disclosed  that the tariff reviews going forward would  only follow service-based principles.

According  to NERC under these service-based principles DISCOs would  only be able to review tariff rates for customers when theyhave consulted  with customers, commit to increasing the number of hours of supply per day and quality of service.

It noted further that in  all those cases the poor and vulnerable Nigerians would  not experience any increase. In  line with these expectations, DISCOs , it said  are directed to engage with their customers on a Service Based Tariff structure. However, under  the Service Based Tariff Structure, DISCOs could  only review tariffs for customers under the  conditions which include

customers are consulted and communicated a guaranteed level of electricity service by the DISCOs based on hours of supply

customers are metered

and no estimated billing through the strict enforcement of the capping regulation. According  to the regulatory agency this boiled down to the fact  that unmetered customers would not experience any cost increase beyond what is chargeable to metered customers in the same area.

Even under the above conditions, NERC noted that  there touldbe no change in tariff for the most vulnerable as tariffs for those consuming 50KW or less remain frozen while customers receiving less than 12 hours of supply would  also not experience any change in tariffs.

In addition, it revealed that  the President had   directed that there should be a nationwide mass-metering program in an effort by the Federal Government to put a stop to estimated and arbitrary billing for electricity. He has also approved a waiver of the import levy on meters, so that those that do not have meters can be supplied as early as possible at reasonable costs.

According to the agency  general public and all stakeholders in the power sector “are by this statement urged to disregard any reports of an arbitrary tariff increase affecting Nigerians.”