THE Nigerian Electricity Regulatory Commission (NERC) has announced increase in tariff rate for electricity consumption in the country from N8.50 to N10 with effect from July 1, 2011.
The commission also informed the chief executive officers of electricity distribution companies that the last schedule of the 2008/2013 regime of Multi Year Tariff Order (MYTO) will be applicable at the same time.
In a statement issued in Abuja, NERC described the development as a marginal increase in kilowatt hour of electricity.
NERC Chairman, Dr. Sam Amadi, in his notice to chief executive officers of electricity distribution companies on the take off date of 2011 tariff schedule, urged them to ensure improved service delivery to their customers.
Amadi said: “The marginal increase was since approved in 2008 and we have the responsibility to inform the public as part of our commitment to transparency.
“The Commission hereby reminds you of the responsibilities owed to your customers particularly as regards its guidelines on customer complaints handling, connection and disconnection procedures, customer service standards of performance and meter reading. We will be resolute and uncompromising in ensuring compliance, and imposing sanctions on chief executive officers and managers of companies that fall short of the required standards.”
NERC in 2008 introduced MYTO to ensure that prices of electricity are predictable and to mobilise the required funds to the industry by attracting needed private sector investments through a tariff system that ensures fair return on investment, while protecting customers against profiteering.
It is however not clear if there will be an upward review after an audit report is submitted by the 11 distribution companies who have been directed to do so at a meeting held earlier with the NERC boss by the chief executive officers of the companies.
The commission had demanded for an audit report of their companies in the last five years for a clear understanding of losses incurred by both the government and private companies to arrive at a standard price for the new tariff set for 2012.
A source at the commission explained that the distribution companies have not done any audit in the last five years owing to bureaucratic system at the Power Holding Company of Nigeria(PHCN) headquarters in Abuja.
The essence of the audit is to understand the technical and commercial loss accruing to both the government and private companies to prevent consumers from inheriting unnecessary billing.
The commission also informed the chief executive officers of electricity distribution companies that the last schedule of the 2008/2013 regime of Multi Year Tariff Order (MYTO) will be applicable at the same time.
In a statement issued in Abuja, NERC described the development as a marginal increase in kilowatt hour of electricity.
NERC Chairman, Dr. Sam Amadi, in his notice to chief executive officers of electricity distribution companies on the take off date of 2011 tariff schedule, urged them to ensure improved service delivery to their customers.
Amadi said: “The marginal increase was since approved in 2008 and we have the responsibility to inform the public as part of our commitment to transparency.
“The Commission hereby reminds you of the responsibilities owed to your customers particularly as regards its guidelines on customer complaints handling, connection and disconnection procedures, customer service standards of performance and meter reading. We will be resolute and uncompromising in ensuring compliance, and imposing sanctions on chief executive officers and managers of companies that fall short of the required standards.”
NERC in 2008 introduced MYTO to ensure that prices of electricity are predictable and to mobilise the required funds to the industry by attracting needed private sector investments through a tariff system that ensures fair return on investment, while protecting customers against profiteering.
It is however not clear if there will be an upward review after an audit report is submitted by the 11 distribution companies who have been directed to do so at a meeting held earlier with the NERC boss by the chief executive officers of the companies.
The commission had demanded for an audit report of their companies in the last five years for a clear understanding of losses incurred by both the government and private companies to arrive at a standard price for the new tariff set for 2012.
A source at the commission explained that the distribution companies have not done any audit in the last five years owing to bureaucratic system at the Power Holding Company of Nigeria(PHCN) headquarters in Abuja.
The essence of the audit is to understand the technical and commercial loss accruing to both the government and private companies to prevent consumers from inheriting unnecessary billing.
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