No tariff reduction for residential customers, AEDC insists | Independent Newspapers Limited
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No tariff reduction for residential customers, AEDC insists

Posted: Apr 12, 2015 at 6:28 pm   /   by   /   comments (0)


By Obas Esiedesa, Abuja
Abuja Electricity Distribution Company (AEDC) on Sunday insisted that the 50 per cent reduction in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC) does not affect residential consumers under the R1 and R2tariff categories.
AEDC in a statement by its spokesman, Ahmed Shekarau, in Abuja explained that the clarification had become necessary in view of the misconceptions by some of its customers that the recent reduction by Nigeria Electricity Regulatory Commission (NERC) was for all categories of electricity consumers, and are therefore, resisting payment of their electricity bills.
NERC had earlier last month announced a major shake-up in the tariff system that ended the transfer of collection losses to consumers following weeks of pressure from the Manufacturers Association of Nigeria (MAN), and individual electricity consumers over astronomical increases in electricity tariff.
The commission had reasoned that the removal of collection losses would reduce electricity tariff by about 50 percent, explaining that it was improper to continue to transfer costs which are under the control of the electricity distribution companies (Discos) to consumers who pay their bills.
The AEDC, however, affirmed that the “tariff for customers in the R1 & R2 tariff class was not adjusted in the last tariff adjustment by the NERC, hence these classes of customers are not affected in the new tariff reduction, which it says is meant for commercial and industrial customers alone”.
The distribution company quoting the Chairman of NERC, Dr. Sam Amadi, in confirmation of its position, AEDC said further that “majority of the residential customers in the R2 and R1 categories did not experience the January 1, 2015 increase in tariff. They will not also see any reversal or reduction in tariff as the industrial, commercial and high-end residential consumers whose tariffs were increased.
“It will be recalled that NERC had explained earlier on that the increase in tariff for residential consumers was frozen until June this year, meaning that the residential consumers were not paying the
increase effected in January, 2015, and would therefore not see any reduction in their electricity bills”.