**Categorize Customers Payments In Hours Of Electricity Supply
Management of Abuja Electricity Distribution Company (AEDC) has concluded plans of effecting a new electricity tariff structure beginning next Month, July 1st, 2020.
It explained that the new tariff regime constitute part of measures designed to improve service level performance within its franchise areas of Federal Capital Territory Abuja, Kogi, Nasarawa, Kogi and Niger States.
Further, AEDC which noted that the review had become overdue even before the outbreak of COVID 19, added that the hike became necessary in view of radical changes in the macro-economic indicators such as inflation and foreign exchange.
AEDC Managing Director, Engr. Ernest Mupwaya while speaking on the proposed tariff, explained that the new tariff is a total departure from the blanket and across board tariff structure used in the past in the sector and is predicated on the level of service available to customers in different clusters, especially in terms of hours of availability of electricity supply to specific geography within its franchise area.
Describing it as Service Reflective Tariff (SRT), AEDC said that five tariff bands have been created as Bands A – E.
This implied that the more hours of electricity supply enjoyed by customers, the higher the tariff payable by such categories of customers, while those with less hours of electricity supply will be required to pay less or nothing until service is improved in such areas.
He gave the categories of the bands saying while Band A are customers who have up to 20hrs of supply and above, Band B is made up of customers who enjoy electricity supply for at least 16hrs but do so for less than 20hrs daily.
Also, Bands C & D are customers who enjoy electricity supply for a minimum of 12hrs but not up to 16hrs and a minimum of 8hrs but not up to 12hrs respectively. Band E are customers who receive electricity for less than 8hrs.
Engr. Mupwaya said further that while customers within Bands A – D will experience a marginal upward adjustment in the cost of electricity, those in Band E will have their tariff frozen until the Company can show an improvement in the level of service to the customers within the cluster.
“We have structured the new tariff regime in such a way that there can be fairness and equity both to the service provider and the customer.
“Embedded in the new tariff regime is an incentive for the service provider to speedily ramp up performance to 24hrs in all clusters so that it can draw from the benefit of economics of scale associated with numbers, volume and other parameters within its geography”, Mupwaya said.
While listing some of AEDC’s achievements including being the sector leader in the metering of customers, installation of hi-tech technical equipment, a robust commercial management system as well as a multi-channel customer contact centre, the managing director assured that with the commencement of the tariff regime and the support of its valued customers, the Company was prepared more than ever before to further raise the bar of performance in the sector.
On what it expects from the customers, Engr. Mupwaya said: “The Nigerian power sector has no doubt arrived at a critical juncture as it heads for the point where itvcan setve asxa catalyst for industrial and soci-economic growth and development of the nigerian nation. A critical element in this transformation journey is the role of the customers, which comes in the form of accurate and consistent payment for energy received.
“The electricity value chain – GasCo, GenCo, TCN and DisCo can only improve where investment and recovery are at par and the investor has the opportunity for a marginal compensation for his investment.”
