NERC approves new electricity tariff, abolishes fixed charges

The new electricity tariff regime approved by the Nigerian Electricity Regulatory Commission (NERC) has removed fixed charges for all classes of electricity consumers.

This is contained in a statement on the company’s website, signed by its Head, Public Affairs Department, Dr Usman Abba Arabi.

It said from the next billing period, distribution companies would no longer charge their customers monthly fixed charges.

Fixed charge is that component of the tariff that commits electricity consumers to paying an approved amount of money not minding whether electricity is consumed during the billing period.

Under the new tariff regime, electricity consumers will now only pay for what they consume from month to month.

According to the Chairman of NERC, Dr Sam Amadi: “This is good news for electricity consumers who have long asked for a more just and fair pricing of electricity.

For instance, residential customer classification (R2) in Abuja Electricity Distribution Company will no longer pay N702 fixed charge every month.

Their energy charge will increase by N9.60kwh. Also, residential customers (R2 customers) in Eko and Ikeja electricity distribution areas will no longer pay N750 fixed charges.

They will be getting N10/kwh and N8kwh increase respectively in their energy charges.