New electricity tariffs in Nigeria 2020 hike for kilowatt unit of energy frustrate pipo from Ikeja to Abuja - See how much you go pay now & why NERC announce sudden hike
New electricity tariff wit more than 100% increase na im Nigerian must pay from 1 September, 2020.
Nigerian Electricity Regulatory Commission (NERC) suddenly increase light bill AKA electricity tariff from 30.23 Naira for one kwh (kilowatt unit of energy per hour) to as much as 62.33 Naira per kwh.
NERC call di new electricity charges 'Service Reflective Tariff' wey go be di more hours you enjoy energy supply di more bill you go pay.
Di new electricity tariff in Nigeria 2020 hike for kilowatt unit of energy come into effect afta one meeting wey dem do on Monday 31 August, come direct Distribution Companies alias Discos to begin charge new tariff plan immediately.
Wit dis new tariff, pipo wey dey use light for 12 hours and above go pay between 80% and over 100% light bill more but di increase no go affect poor pipo wey dey use light for less hours, according to category wey di electricity regulators put.
Reasons why NERC suddenly hike di tariffs
Nigerian Electricity Regulatory Commission say dem consider di following:
- Inflation rate (di cost of living for Nigeria)
- Global Gas price (wey don increase since 2015)
- Nigeria exchange rate
- US exchange rate
- Average kilowatt wey Discos dey sell
- Unit cost of power generation
- Di total alias aggregate technical collection and commercial loses
Dis factors, according to di NERC wey be electricity regulator for Nigeria na factors wey no dey in dia hands.
While some of dis factors be di same across Nigeria, some of di factor different from Disco by Disco.
For example, di aggregate technical collection and commercial loses - dis na di electricity wey di Disco lost wen dem bin dey try collect or send to di final users alias electricity consumers.
Following dis directives from NERC, di whole 11 electricity distribution companies alias Discos inside Nigeria don begin dey alert dia customers say di new price for light go dey start from Tuesday 1 September.
John Onyi of Port Harcourt City Electricity Distribution Company tell BBC Pidgin say PHEDC - di electric distribution company wey dey supply power for Rivers, Bayelsa, Cross River and Akwa Ibom states go begin network expansion to make life and power supply better for customers.
Customers wey dey on Service Band D and E (ie those wey dey enjoy eight hours and odas wey dey get just four hours light a day) dem no go dey affected and so dem go still dey pay 30.23 Naira for one kwh (kilowatt unit of energy per hour) until further notice, NERC tok.
“Di tin go worry o. Di tin no go good because already, to even pay di one we dey pay before dey worry us because of di way di economy is. So to come begin increase am now, na anoda problem be dat” One Nigerian tell BBC Pidgin.
Anoda man, for Port Harcourt southern Nigeria, say di goment don too fail for electricity matter and if dem must increase tariff, dem must to assure dem say light go dey dey.
“If light go dey dey 24 hours as dem promise us before, I believe say whatever you pay for light, to me, I believe say we no go complain much.” he add say di increment suppose dey gradual.
Dis man say im dey enjoy almost 12 hours of light for im area and if dem increase tariff, im go fit pay. However, e add say if di increase too high, e go go buy generator.
One oda pesin wey follow BBC Pidgin tok for Abuja say goment no get justification for in increment.
Dis na di new rate wey Nigerians go now dey pay for electricity
According to di minor review of multi year tariff order 2015 and minimum remittance order for di year 2020 for di distribution companies wey NERC publish for dia website, NERC set projection for di cost reflective tariff wey go start in 2021.
However, di service reflective tariff wey start on 1 September, 2020 be di amount wey pipo go dey pay for di hours of light wey dem dey use.
Di Discos don divide users into diffrent group wey dem label A to E; Those wey dey Band A dey use 20 hours of light, B dey use 16 hours of light, C dey use 12 hours of light, D dey use 8 hours and E dey use only four hours.
According to di new regulations dos wey dey D and E no go dey affected by di new minor review. Di service reflective tariff na di transition process wey go finally make Nigerians to dey pay cost reflective.
Di cost reflective tariff na one of di requirement for the approval of di proposed $1.5 billion World Bank loan wey di goment want collect for di power sector.
Different stakeholders for di electricity sector don say dem no gree with dis new tarrif and fear say e fit get economic impact, according to wetin Punch Newspaper report.
Di Nigerian Electricity Consumers Advocacy Network say di increase na policy summersault as di goment only consult wit few pipo for di sector before dem announce di increase. Nigeria President Muhammadu Buhari, on Tuesday, approve di implementation of di cost-reflective electricity tariff for NESI.
Di president also approve one-year waiver of 35% import tax on prepaid meters to help increase provision to consumers for accurate billing.
In June, as pipo begin see di effect of coronavirus pandemic, di kontri national assembly say dem don convince electricity distribution companies to stop di plan to increase in tariff for electricity till first quarter of 2021. Di leadership of di national assembly say di timing of di increase dey wrong sake of di pandemic and as plenty business don dey shut down.
Although di kontri don begin to reopen businesses and schools, di economy neva open fully as dem dey apply caution to avoid second wave of coronavirus infection even as di kontri try go back to normal life.
Some Discos don already put post for dia social media pages about di new electricity tariff.