FG SLASHES ELECTRICITY TARIFF BY 50%

FG slashes electricity tariff by 50%

The Nigerian Electricity Regulatory Commission today announced a fifty percent reduction in electricity tariff after receiving several complaints from consumers.

The Commission said the reduction was for some power distribution companies after it removed the collection loss component of the Multi Year Tariff Order 2.1 of the affected Discos.

The Chairman of NERC, Dr. Sam Amadi, who disclosed this in Abuja, said the addition of the Aggregate Technical, Commercial and Collection losses to the reviewed tariff that was implemented on January 1, 2015, were responsible for the skyrocketed tariff.

According to Punch, the commission said the addition was done after it conducted a fact-finding tour of the Discos and noted that it was aimed at ensuring a cost reflective tariff by passing the
bulk to ‘paying’ consumers for losses incurred from ‘non-paying’ consumers.

NERC said, “Although increment in residential tariff was pending till June, 2015, the total removal of the collection loss applied to all consumer categories, including the industrial and commercial consumers, who were affected.”