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HomeTrade and IndustryIkeja, Kaduna electricity firms suspend new tariff

Ikeja, Kaduna electricity firms suspend new tariff

By Tanko Mohammed

Ikeja Electric (IE) and its Kaduna counterpart have complied with the order of the Nigerian Electricity Regulatory Commission (NERC) suspending the new Service Reflective Tariff (SRT) for the next two weeks.

The electricity distribution companies confirmed their compliance on Thursday.

Ikeja DisCo  said : “Dear Esteemed customers, this is to inform you that we have fully complied with the Order from the NERC to suspend the new Service Reflective Tariff (SRT) for the next two weeks.

” Within this period, the tariffs for all customers shall be based on rates applicable as at Aug. 31. ”

NERC on Wednesday  ordered the 11 electricity distribution companies (DISCOs) to suspend the Sept. 1 tariff increment.

The commission’s suspension order of the Multi Year Tariff  Order (MYTO) 2020  signed by NERC’s Chairman, Prof. James Momoh, was released on its website

The suspension followed a joint communique issued by the Federal Government and the labour unions.

The Federal Government agreed that the recent review in electricity tariffs would be suspended by the commission for a period of 14 days to further consultations  that would to  final negotiations between the parties.

The order by NERC said that from Sept. 28  to Oct. 11, the DisCos must revert all charges to the tariff existing as of Aug. 31.

“This means that  for the next two weeks, electricity consumers having power above 12 hours who were affected by the over 100 per cent tariff hike would revert to their old charges.”

It said as empowered by Section 33 of the Electric Power Sector Reform Act ( EPSRA) 2005, the Minister of Power, Mr Sale Mamman, could issue such a directive to NERC.

Kaduna Electric started implementing the old electricity tariff as at Aug. 31st, 2020 as ordered.

The Head of Corporate Communication, Abdulazeez Abdullahi, made the disclosure on Thursday in Kaduna.

Abdullahi said that the reversal to the old tariff regime was sequel to the agreement reached between the Federal Government and the leadership of the Nigerian Labour Congress (NLC) to suspend the recently approved service based tariff.

“Following the directive of the NERC to Distribution Companies to suspend the new Service Based Tariff, the management of Kaduna Electric wishes to inform its customers and the general public that it has fully complied with the directive.

“Prepaid customer who purchase electricity tokens from today will therefore see the value of the old tariff reflected in their tokens, while postpaid customers will also see the old tariff reflected on their next bill,” he said in a statement.

Abdullahi expressed the hope that the technical committee set up to look into how the service based tariff was arrived at, would conclude its assignment on schedule and allow for the new tariff to be implemented.

He said the new tariff would help to enhance service to customers, improve liquidity and drive investments in the sector.

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