50% electricity tariff reduction ‘not for residential consumers’

The Nigerian Electricity Regulatory Commission (NERC) has declared that the recent reduction in electricity tariff does not include residential customers.

This was revealed by Sam Amadi, chairman of NERC, who gave the clarification at a meeting with members of the Electricity Consumer Association of Nigeria.

Two weeks ago, NERC announced the reduction in tariff by 50 per cent following complaints from customers who rejected the increase that was announced earlier this year.

According to him, the increase, on the first day of the year, affected industrial, commercial and high-end residential consumers only. He said most people in the R1 and R2 categories were to begin paying increased tariffs from July 1, 2015.

“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 reduction in tariff unlike the industrial, commercial and high-end residential consumers whose tariffs were increased,” he said.

“We have always tried to listen to complaints from consumers and operators alike and we carry out tariff reviews when necessary. We are a responsive and accountable regulator. It was a reduction based on the impact collection loss had on the tariff.”

Amadi explained that the tariff reduction for the industrial, commercial and high-end residential electricity customers (R3 consumers), would become effective from this March.

He said the reduction was a decision reached in line with the commission’s business rules in response to protests from the Manufacturers Association of Nigeria (MAN) on the implication of the January 1, 2015 increase on their businesses, adding that there was merit in the argument put forward by MAN.