By Obas Esiedesa
Electricity customers in the Federal Capital Territory (FCT), Nasarawa, Kogi and Niger States would, from July 1, pay a higher tariff for electricity, the Abuja Electricity Distribution Company (AEDC) has said.
The company in a statement on Friday morning said it would effect the new electricity tariff as part of measures designed to improve service level performance within its franchise area.
ExpressDay recalls that the new tariff increase was originally scheduled to take effect on February 1, but was moved forward following outcry from consumers and the need to provide meters for more customers.
AEDC explained that the review, which had become overdue even before the outbreak of Covid- 19 became necessary “in view of radical changes in the macro-economic indicators such as inflation and foreign exchange”.
The company’s CEO, Engr. Ernest Mupwaya explained that the new tariff “is a total departure from the blanket and across board tariff structure used in the past in the sector and is predicated on the level of service available to customers in different clusters, especially in terms of hours of availability of electricity supply to specific geography within its franchise area”.
Called the Service Reflective Tariff, AEDC explained further that five tariff bands have been created.
It listed the band’s as Bands A – E.
While Band A are customers who have up to 20hrs of supply and above, Band B is made up of customers who enjoy electricity supply for at least 16hrs but do so for less that 20hrs daily.
Bands C & D are customers who enjoy electricity supply for a minimum of 12hrs but not up to 16hrs and a minimum of 8hrs but not up to 12hrs respectively. Band E are customers who receive electricity for less than 8hrs.
Engr. Mupwaya said further that while customers within Bands A – D will experience a marginal upward adjustment in the cost of electricity, those in Band E will have their tariff frozen until the company can show an improvement in the level of service to the customers within the cluster.
“We have structured the new tariff regime in such a way that there can be fairness and equity both to the service provider and the customer. Embedded in the new tariff regime is an incentive for the service provider to speedily ramp up performance to 24hrs in all clusters so that it can draw from the benefit of economics of scale associated with numbers, volume and other parameters within its geography”.
While listing some of its achievements to include the sector leader in the metering of customers, installation of hi-tech technical equipment, a robust commercial management system as well as a multi-channel customer contact centre, AEDC said with the commencement of the tariff regime and the support of its valued customers, the
Company was prepared more than ever before to further raise the bar of performance in the sector.
On what it expects from the customers, Engr. Mupwaya said “The Nigerian power sector has no doubt arrived at a critical juncture as it heads for the point where itvcan setve asxa catalyst for industrial and soci-economic growth and development of the nigerian nation. A critical element in this transformation journey is the role of the customers, which comes in the form of accurate and consistent payment for energy received.
“The electricity value chain – GasCo, GenCo, TCN and DisCo can only improve where investment and recovery are at par and the investor has the opportunity for a marginal compensation for his investment.”