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Discos Resume Reflective Tariff One Month After Meeting Labour Leaders

November 3, 2020

Some of the electricity distribution firms said they would begin the progressive increase of power fees based on service delivery from November 1.

One month after the 12 distribution companies and the Nigerian Labour Congress agreed that the reflective service tariff be suspended for two weeks, certain discos have resumed the implementation of the new tariff.

Some of the electricity distribution firms said they would begin the progressive increase of power fees based on service delivery from November 1.

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"This revision is further to the consultative review meetings held between the federal government, labour unions and other stakeholders, following concerns raised about the basis of the Multi-Year Tariff Order (MYTO) 2020 SRT tariffs, which were earlier planned to be implemented from September 1 2020," Ikeja Electric said.

"Under the SRT, the tariff classification is based on the quality of service and therefore, divided into 5 Bands (A-E); measured by the average availability of power supply over a month, interruptions (frequency and duration), voltage levels and other service parameters.

"With the revised tariff regime, Non-MD customers in Band A, with a minimum of 20 hours daily, will now pay N51.22/Kwh. Band B customers with a minimum of 16 hours daily will be charged N46.93/Kwh; while B and C customers, with a minimum of 12 hours daily, will be charged N37.95/Kwh.

"However, please note that customers in Bands D and E, with a minimum of eight hours and four hours per day, respectively, are not impacted by the tariff revision. Their SRT tariffs have been frozen, and consequently, they will continue to be charged the old tariff before the introduction of the SRT."

The Abuja Electricity Distribution Company (AEDC) stated that its customers on the prepaid platform would be the first to experience the revised tariff from November 1.

The firm noted that the tariff of its customers on the lowest classifications – Bands D and E, would be frozen.

"Customers on the prepaid platform will be the first to experience the revised tariff when they vend from Sunday, November 1 2020, while the revised tariff will reflect in the bills for customers on the postpaid platform when they receive their electricity bill.

"The tariff is divided into 5 Bands and based on hours of supply to the customers. While customers on Bands D & E have their tariff frozen, those on Bands A, B & C will see some level of reduction in their tariff as they vend," the statement from AEDC read in part.

The firm asked its customers to "please see this tariff regime as an opportunity for them to join hands with AEDC to speed up the process of improving the quality of service in the Nigerian power sector."

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Electronics