Contrary to consumers’ belief that electricity distribution companies (DISCOs) would remove fixed charges from their bills, Nigerians have been told that fixed charged are still part of the billing system.
The Senate recently resolved that electricity distribution companies should stop the fixed charges, but the companies said the Senate’s resolution was not binding as it was not the electricity regulatory body.
However, at a consumers’ forum in Ado-Ekiti, the Ekiti State capital, the Benin Electricity Distribution Company (BEDC) explained that the fixed charges were still part of the billing system, saying the National Electricity Regulatory Commission (NERC) and the DisCOs had made presentations to the Senate on the matter.
Answering questions on the fixed charges and the Senate resolution, the Chief Legal Officer of BEDC, Mr Lucky Ayemoto explained that “as the regulator, NERC is not happy that it was not consulted on the matter and the last has not been heard about the fixed charges. Fixed charges are still part of our billing system as we speak.”
Ayemoto also clarified that DisCos got directives on NERC being the electricity regulatory agency and not from the Senate, whose resolution is not law, saying “until NERC, which is the regulatory body directs otherwise, Nigerians must know that fixed charges is still a component of our billing system.”
Addressing the forum, the BEDC Chief Corporate Service Officer, Mrs Kunbi Labiyi, who represented Mrs Funke Osibodu, the Managing Director of BEDC, sought the cooperation of Nigerian electricity consumers, especially those in Edo, Delta, Ekiti and Ondo states, its area of coverage, as the company proposed a tariff review.
The BEDC explained that it had become imperative for consumers to understand the need for a tariff review, saying the proposed tariff review was to ensure that customers had more power.
“The proposed traffic review is to ensure the customers have more power by ensuring the value chain of generating companies, transmission companies and distribution companies have a cost-reflective tariff that will ensure sustainable investment and payment for services,” she stated.
According to BEDC, tariff is determined by the cost of power, capital expenditure, financing cost and the amount of operational costs, noting that the tariff review would be yearly for a 10-year plan.
The company, however, condemned the low level of payment for electricity by its customers which they described as a major challenge in the power sector, urging customers to pay their bills regularly.
They also lamented that about 22 to 25 per cent of illegal consumption and 12 to 15 per cent meter infractions is a major challenge to a successful power supply.
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