Tariff increase: Consumers to pay N1.52tn for power next year

Consumers will pay about N1.52tn for power next year, going by the recent tariff increase approved by the Federal Government, investigations have shown.

This is about N600bn higher than the estimated N900bn which the electricity distribution companies are expected to make this year.The PUNCH had exclusively reported that the Federal Government, through the Nigerian Electricity Regulatory Commission, had approved an increase in the tariff payable by power consumers across the country.

Findings by one of our correspondents from various documents obtained from the NERC showed that from next year, consumers would have to pay an additional sum of between N8 and N14 for every kilowatt-hour of energy.

More figures obtained from the commission’s headquarters in Abuja during the week showed that the 11 power distribution companies in Nigeria would receive increased quantum of energy in 2020.

Since not all power delivered to the Discos is distributed to end users, by adding the lowest tariff increase of N8/kWh to the current 2019 tariff of each Disco and multiplying same with the quantum of energy to be delivered to the Disco in 2020, it was established that power users would pay more next year.

For Abuja Disco, the end-user allowed tariff from 2017 to 2019 per kWh, as approved by the NERC, was N32.66 in each of the years, while those of 2020 and 2021 were put at N42.46 and N44.21.

Abuja Disco has been allocated 4,489GWh of power in 2020. Payments for tariffs are made in Naira per kilowatt-hour.

When converted to kWh, 4,489GWh will be 4,489,000,000kWh.

Since the Disco will likely not distribute all the power it gets, a summation of the lowest tariff increase of N8 with the Disco’s 2019 tariff of N32.66 gives N42.46.

When this is multiplied by the quantum of power which the Disco has been allocated in 2020, it indicates that customers of the AEDC will pay about N182.5bn for electricity by next year.

For Benin Disco, 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.

NERC has allocated 3,513GWh to Benin Disco in 2020 and when the lowest tariff increase of N8 is added to the current tariff, N32.5, of this power firm, it gives N40.5.

Going by the earlier method of calculation applied for Abuja Disco, consumers of power under the franchise areas of Benin Disco are expected to pay about N142.28bn by next year.

For Eko Disco, the commission said the end-user allowed tariff from 2017 to 2019 per kWh was N28.3 in each of the years, while those of 2020 and 2021 were put at N36.8 and N39.2.

Eko Disco will get 4,294GWh of power next year and consumers of power being served by the firm will pay about N155.87bn in 2020, going by the earlier method used for the Abuja Disco.

Our correspondent observed that for Enugu Disco, the allowed end-user tariffs for 2019, 2020 and 2021 per kWh are N35.3, N45.9 and N41.6, respectively.

Enugu Disco has been allocated 3,513GWh. Still based on the established method of calculation, consumers of the power firm will pay about N152.1bn in 2020.

For residents who are served by the Ibadan Disco, the end-user allowed tariffs for 2019, 2020 and 2021 per kWh are N30.6, N39.7 and N44.2 respectively.

Ibadan Disco is to get 5,075GWh of power next year and going by the earlier established methods of calculation, customers of the Disco will pay about N195.89bn.

In Ikeja Disco’s franchise areas, the end-user allowed tariffs in the order from NERC for 2019, 2020 and 2021 per kWh were put at N27.3, N35.5 and N37.1 respectively.

Ikeja Disco’s allocation of energy for 2020 is 5,855GWh and the projected amount which its customers will pay next year for electricity supplied by the Disco, based on calculations applied earlier, is about N206.68bn.

For Jos Disco, consumers under this power firm will have to pay N43.9/kWh, as against N33.8/kWh which they currently pay.

Jos Disco got an allocation of 2,147GWh for 2020 and its customers will pay about N89.7bn as power tariff next year, based on our established methods of calculation.

For Kaduna Disco, the end-user allowed tariffs for 2019, 2020 and 2019 per kWh, as captured by NERC, are N30.3, N39.3 and N41.7 respectively.

This power firm will get 3,123GWh of energy next year and its customers will pay about N119.6bn in 2020, based on the established findings and calculations.

Also, for Kano Disco, 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.

Kano Disco has been allocated 3,123GWh of energy next year and customers here will pay about N118.98bn for electricity in 2020, based on the established methods of calculation.

The tariff for Port Harcourt Disco increased from N33.8 in 2019 to N44.0 in 2020 and the power firm has been allocated 2,573GWh of energy by next year.

Its customers will pay about N106.04bn for electricity supplied to them by next year, based on findings.

Finally, Yola Disco also saw an increase in tariff from N26.8 in 2019 to N34.9 in 2020.

The energy allocation for Yola Disco in 2020 is 1,366GWh and customers served by the power firm will pay about N47.54bn, going by our established method of calculation.

The summation of what consumers of power of the 11 Discos will pay next year gives a total of about N1.52tn.

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