Electricity Tariff: DISCOs to refund overcharged households – Presidency


…FG to use NESI’s VAT proceeds to reduce tariff hike by 31%

The Presidency on Monday said it will work out modalities to ensure that customers overcharged by the Eleven Electricity Distribution Companies, DISCOs, during the recent hike in tariff get their refunds.

This came even as the Special Adviser to the Nigerian president, on Infrastructure, Ahmad Rufai Zakari, disclosed that the DISCOs will distribute six million prepaid meters to Nigerian households.

Zakari made this known shortly after a negotiation meeting between the Federal Government and Labour Union.

It would be recalled that, the Nigerian Electricity Regulatory Commission (NERC) earlier in September, increased electricity tariff from N30.23 per kilowatt-hour to N62.33 Per kwh.

Following the tariff increment, five distinctive bands (A-E) were created to reflect the various service levels and minimum hours of power supply.

For instance, customers in “Band A” are to enjoy a daily minimum supply of 20 hours, those in “Band B” minimum of 16 hours, “Band C” minimum of 12 hours, “Band D” minimum of 8 hours, while those in “Band E” are expected to enjoy a minimum daily supply of 4 hours.

It was gathered that, the impact of the reviewed tariff will only apply to customers in Bands A, B and C; while the tariff for customers in Bands D and E remains frozen until their service quality is improved upon. It is only then that they will be migrated to the Band that suits their supply availability.

However, Zakari stated that, “The implementation of the above tariff reliefs will be executed within this week as the suspension of the Service-Based Tariff is removed, the distribution of six million free meters to Nigerians and refunds for any customers overcharged by the DIsCOs will also be implemented.

“We completed our work with Labour on electricity tariffs. The federal government will use Value Added Tax, VAT proceeds from the Nigerian Electricity Supply Industry, NESI, to reduce the September increases by 10 per cent to 31 per cent for bands A to C. Band D and will remain frozen.

“I thank the federal government for allowing me to serve as Secretary of the joint committee. Creative solutions to find incremental relief for Nigerians at this difficult time is great. The Committee’s work is extended for two months. Thanks to the Nigerian Labour Congress, NLC and the Trade Union Congress, TUC, for the constructive partnership,” he added.


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