Business
Electricity tariff: DisCos dares NERC, returns 620 areas to Band A
Electricity tariff: DisCos dares NERC, returns 620 areas to Band A
Thousands of electricity consumers in about 620 feeder coverage areas across the country downgraded to Band B are set to return to Band A, moving their tariff upwards from N68 per kilowatt hour to N225/kWh.
The Nigerian Electricity Regulation Commission (NERC) on Tuesday announced a new tariff for the Band A customers increasing the rate by about 230 per cent.
NERC on Thursday published a list of over 90 areas in Lagos State covered by the Ikeja Electric and Eko DisCo that are classified under Band A and affected by the new tariff increase.
Those in the other bands from B to E are not affected by the tariff hike.
The return of more consumers to Band A was a decision taken by the electricity distribution companies (DisCos), according to a report by Vanguard.
The newspaper stated that the DisCos had recorded 1,100 feeder coverage areas for Band A but NERC said the actual coverage area for the new tariff is only 480.
A source in one of the DisCos in Lagos told Vanguard that they were now working on increasing the number of Band A consumers to return those earlier removed by NERC back to Band A.
Band A customers are those who receive an average daily supply of electricity supply 20 hours or more.
With the new order issued by NERC, Band A would no longer enjoy the Federal Government subsidy on electricity.
The new tariff regime is expected to reduce subsidy costs by N137.1 billion per month following the decision to raise tariff for about two million consumers by 230 per cent.
Vanguard also reported that following the freeze in tariff, annual subsidies payable by the government rose to N241.66 billion monthly.
NERC disclosed that the government would now spend only N104.6 billion monthly as subsidy, which was hitherto N241.66 billion.
Business
Replace prepaid meters without charging consumers, FCCPC tells DisCos
Replace prepaid meters without charging consumers, FCCPC tells DisCos
THE Federal Competition and Consumer Protection Commission, FCCPC, yesterday, urged Electric Distribution Companies, DISCOs, to carry energy consumers along before classifying them into bands and adhere strictly to industry regulations on billing unmetered consumers.
FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr Tunji Bello said this at a stakeholders’ meeting at the FCCPC headquarters in Abuja.
Representatives of the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), various electricity distribution companies (DISCOs), and Unistar Hitech Systems Limited attended the meeting.
He urged them to address pressing metering issues impacting Nigerian consumers.
Citing noncompliance with NERC’s order, FCCPC directed Ikeja Electricity Distribution Company, IKEDC, and Eko Electricity Distribution Company, EKEDP, to immediately halt their replacement of Unistar prepaid meters.
His words: “From our analysis of consumer complaints, it is clear that electricity consumers routinely endure problems related to billing, metering, transformers, connections, disconnections, and customer service, among others.
“Regrettably, many of these challenges, from billing inaccuracies to inadequate customer care, are human-made. They stem from systemic inefficiencies and a troubling culture of impunity among certain service providers.
“The FCCPC Act (FCCPA) and current NERC regulations grant consumers rights, including rights to fair treatment and transparent billing.
“However, complaints reveal that consumers are often forced to pay upfront for meters without reimbursement, contrary to established guidelines under the NERC Meter Asset Provider and National Mass Metering Regulations 2021, which stipulate reimbursement through energy credits.
“Furthermore, customers with faulty meters are randomly placed on estimated billing by some DisCos, a practice that is prohibited by NERC.”
Bello said although Nigeria faces power shortages, it does not justify systemic abuses against consumers.
“Going forward, regulatory breaches in the industry will be met with immediate corrective action.
“DisCos have no excuse for failing to follow proper procedures, including reimbursement for meter purchases and ensuring faulty meters are promptly replaced.”
Also speaking, the Assistant Manager at NEMSA, Okeme Obiabo, said it is important the DisCos follow due process for meter replacement.
Obiabo said: “We’ve been addressing obsolete meters, and distribution companies must adhere to the procedures for replacing them. Meter testing and certification are essential, and DisCos are responsible for carrying out these replacements and ensuring that faulty meters are replaced promptly.”
On his part, head of consumer engagement at NERC, Zubair Babatunde reiterated the commission’s commitment to consumer protection, specifically regarding the replacement of obsolete meters.
Replace prepaid meters without charging consumers, FCCPC tells DisCos
Business
Fuel retailers accuse Dangote refinery of targeting monopoly
Fuel retailers accuse Dangote refinery of targeting monopoly
Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has accused Dangote Petroleum Refinery of trying to muzzle competitors and working towards monopoly.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) had earlier said petrol from the refinery was more expensive than imported product.
But Dangote refinery said its ex-depot price of petrol is N990 per litre for trucks and N960 per litre for ships.
It also said any oil marketer selling petrol cheaper than its rate must be importing substandard products.
PETROAN spokesperson, Joseph Obele, in a statement on Monday, said the accusation of importing substandard products by Dangote refinery is “his usual gimmick for maintaining monopoly”.
According to the group, consumers get the best value for pricing when competition is at its peak, hence competition should be encouraged.
“PETROAN has concluded plans with her foreign Refinery counterparts and financial partners to import the best quality of PMS (petrol) and then sell far lesser than the present selling rate of PMS in Nigeria,” the retailers said.
The group said, “We planned to enter the market before December 2024, pending the approval of our import permit licence by the regulatory agency and access to foreign exchange from CBN at the official rate.
“Before now, Dangote Refinery has refused to make public her selling rate of PMS until IPMAN and PETROAN announced readiness to sell lesser.
“The rate of N990 as announced by Dangote refinery was inconsiderate base on the fact Dangote Refinery enjoyed massive concession for accessing foreign exchange during the construction of the refinery.”
Profit margin
PETROAN said the core determinant for setting the price is the cost of production and margin.
“But this wasn’t the case for the determinant of PMS price by Dangote refinery as they said the parameter was comparison with the international selling rate at the global market.
“A nation that gave you a yet to be disclosed concession for foreign exchange which was highly criticised by financial experts, such a country pricing template shouldn’t have been templated by the selling rate at the international market but rather it should have been cost of production plus fair margin.
“Goods from the China markets are not selling as high like goods from the America market because the cost of production differs.
“The allegations that PETROAN will import inferior products and saying also that an international company is trying to establish a PMS blending plant in Lagos are all strategies for Dangote Refinery to push others out of the market with a view to achieving monopoly for exploitation.
“Few months ago the CEO of Dangote Refinery said NNPC LTD was importing inferior petroleum products, that his own was far better than what NNPC Ltd was selling to marketers.
“In another press conference he said the refinery at Malta was just a blending plant and not a refinery.
“Evidences available showed that diesel (AGO) as a deregulated product was selling less than N800 in Nigeria market few weeks before the commencement of AGO production by Dangote Refinery, at the entrance of AGO market by Dangote refinery we witnessed a rapid surge above N1,000 as against the the perception of a ‘Salvaging Refinery’.”
PETROAN said Dangote refinery made the allegations “with the objectives of closing the doors for other operators so as to enjoy monopoly”.
Business
Band A electricity customers complain of high tariff, seek review
Band A electricity customers complain of high tariff, seek review
Many electricity consumers in the Federal Capital Territory (FCT) on Band A, have appealed to the Federal Government to lower the high tariff amid the economic hardship.
The News Agency of Nigeria (NAN) reports that Band A customers are those who enjoy at least 20 hours of electricity daily and are expected to pay N209.5/kilowatts per hour (KWh).
The consumers who live at Lugbe, Area 10, Apo resettlement area, and environs spoke with NAN in Abuja on Sunday.
They said that Band A was okay because they enjoy constant power supply but added that the tariff was too high and so could not cope with the present situation.
Mrs Amen Odigie, a civil servant residing in Lugbe, said that she found herself paying so much to enjoy power supply, which was okay.
Odigie said that what she paid for electricity in the two-bedroom flat she occupied was more than N30,000 in a month.
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“This is really telling on me, as what I earn as salary cannot go anywhere with the present economic hardship in the country.
”I want to appeal to the government to review the high electricity tariff as this Band A is taking most of my income, ” she said.
Mr Ugochukwu Okafor, also residing in Lugbe, said that the electricity tariff for Band A customers was too high.
Okafor, a Vulcaniser, said that his income in a month could not pay for the Band A tariff.
According to him, he wants the Federal Government to do something about the Band A tariff, as it is too high, in view of the present hardship in the country.
Mrs Anita Adaje, a fashion designer residing in Apo resettlement, said that she used electricity a lot to run her business, and with this Band A tariff, she was not making any profit.
”When you bill customers so high, they will refuse to pay, and this is really affecting my business.
”My appeal is that government should look into this high tariff and do something about it,” she said.
Mr Festus Ogunbor, a printer in Area 10, said that he recharged more than N30,000 daily to run his printing machines.
Ogunbor said that the high cost of electricity was affecting his business as he could no longer do much work.
”How much do I make that I have to be paying so much for electricity? Please, I want the government to look into this high tariff as it is seriously affecting businesses and cost of living,” he said.
Mr Chidi Okeke, also a printer in Area 10, said that he had been finding it difficult to power his printing machines because of high electricity tariff.
Okeke said that the government should look for a way of reducing the high cost of electricity to boost businesses as well as encourage more Nigerians to go into business. (NAN)
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