Home Nigeria NERC Tasks Discos to Refund Customers Excess Bills, as New Electricity Tariff...

NERC Tasks Discos to Refund Customers Excess Bills, as New Electricity Tariff Affects 1.5 Million Customers Nationwide

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By Uche Amunike

The Nigerian Electricity Regulatory Commission (NERC), on Saturday, tasked distribution companies to refund all the excess bills served to Band B customers by April 11.

This instruction, which was given to the electricity distribution companies as they implemented the April 2024 supplementary Multi-Year Tariff Order, was given after they received complaints from customers who are not on Band A, but are being made to pay N225/KWh for electricity.

The federal government made it clear on Wednesday that it would no longer pay subsidy on electricity consumed by Band A customers. However, others will continue to pay the old rates

Even though the distribution companies have upgraded their payment platforms, some customers on Band B, C, D and E stated that they were made to pay the new electricity tariff instead of the old one.

This led to NERC, directing that all affected customers be refunded. Hear them: ‘All DisCos shall ensure that only the newly approved Band A feeders listed in their April 2024 supplementary orders are maintained as Band A for the purpose of vending to prepaid customers and billing for postpaid customers on their networks’.

They also asked the distribution companies to post on their websites, the schedule of approved Band A feeders that have been approved by the late review.

Hear them: ‘All DisCos shall set up a portal by April 10, 2024 on their website that allows all customers to check their current bands by entering their meter or account numbers.’

‘All customers wrongly billed at the new rate should be refunded through energy tokens not later than Thursday, April 11, 2024, and file evidence of compliance with the commission by April 12, 2024,’ the NERC ordered.

According to the commission, compliance with the requirements stated above shall be monitored by them even as they continue to provide support to every stakeholder as required.

Nigerians are against the new electricity tariff which has skyrocketed, as well as the classification of certain customers as Band A, through the supply of 20-hour power supply.

Meanwhile, the federal government has stated that the new electricity tariffs will only affect 1.5 million consumers, which is just a small segment of consumers.

The Minister of Power, Adebayo Adelabu, who announced the federal government’s efforts to stop electricity subsidy, claims that the hike won’t affect the majority of Nigerians.

Hear him: ‘From the policy formulation perspective, the recent increase in tariff for only Band A customers which is just 15 per cent of electricity consumers in Nigeria. As of the latest statistics, there are a little about 12 million customers in the sector and this [tariff hike] would only affect about 1.5 million customers,’ he said.

‘The remaining 10.5 million customers will continue to enjoy the government’s subsidy at about 70 per cent.’

He further stated that the government is looking at a ‘cost-reflective’ tariff for consumers, even though the reality of the country’s economy brought about the decision not to completely remove subsidy on electricity.

He also called on the big wigs in the power sector to give value to consumers, so that they can have commensurate value for what they pay for.16:14

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