News

FG Slashes Electricity Tariff by 50%

Published

6 years ago

March 17, 2015

The Nigerian Electricity Regulatory Commission on Tuesday announced the reduction of electricity tariff by 50 per cent after it said it was bombarded with series of complaints from various classes of electricity consumers.
It noted that 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, NERC, Dr. Sam Amadi, who spoke 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.
The addition, according to the commission, 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.
“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,” NERC said.