The Commission noted that there are inbuilt consumer protection mechanisms and incentives for improved service delivery by the distribution companies and fair return on investment in the new tariff order.
Consequently, the Commission has restated its mandate to the distribution companies (DISCOs) to abide by its order not to connect new customers without first providing them with meters.
The acting Head of the Commission, Anthony Akah, in a statement made on Wednesday, January 6, said the removal of fixed charge under the new tariff regime “was in response to electricity consumers’ complaints and a measure to ensure electricity distribution companies improve on service delivery as their income is dependent on the quantity of electricity used by their customers.”
Akah said that the Commission will continue to engage stakeholders including members of the National Assembly to address their concerns on the new tariff regime, adding that “NERC holds the National Assembly in high esteem and we are sure that both institutions are working to ensure that the national and consumer interests are protected.”
The Commission, in implementing this cost reflective tariff will effectively monitor and enforce all service delivery agreements in the new tariff order, Akah said in the statement.
The new tariff order aside from eliminating fixed charge has a robust mechanism to ensure that electricity distribution companies fully meter their consumers and eliminate “crazy” billing within one year.