Power Distribution Companies Submit Increasement In Electricity Tariff Proposal

There is probabilities of an increase in electricity tariff being paid by residential consumers as the power distribution companies submit a proposal to raise the average energy charge to N105 per kilowatt-hour from the current rate of 22.8KWH if is  approved by the Government.

The increasement is coming less than eight months after about 45 per cent increase in tariff was imposed on electricity consumers nationwide.

The electricity firm attributed their latest push for tariff increase to high inflation rate, scarcity of foreign exchange, devaluation of the naira and the huge debts being owed them.

 The Distribution companies said they had hinted the Nigerian Electricity Regulatory Commission on the proposal but no action had been taken towards it.

The Association of Nigerian Electricity Distributors Chief Executive Officer, an umbrella body for the Discos, Mr. Azu Obiaya, who is the Chief Executive Officer. Confirmed the latest agitation for tariff increase, in an interview with our correspondent, stressing that it was important to raise the tariff in order to remain in business and serve the people well.

Azu said, “To review the tariff, we will be looking at an average rate of N70 per kilowatt-hour for residential consumers. But some Discos will like to have the rate as high as N105/kWh.”

Each Distribution companies has a fixed energy charge payable by its customers. The highest charge, according to documents obtained by our correspondent from the Nigerian Electricity Regulatory Commission or the year 2016, is N32.26/KWH and this is payable by R2 consumers under the Jos Electricity Distribution Company.

The lowest energy charge of N15.83/KWH is payable by R2 customers who get power from Ikeja Electricity Distribution Company.