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<title>Consumers Archives • The Electricity Hub</title>
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<link>https://theelectricityhub.com/tag/consumers/</link>
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<title>Consumers Archives • The Electricity Hub</title>
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<item>
<title>A Busy Couple of Weeks for NERC</title>
<link>https://theelectricityhub.com/a-busy-couple-of-weeks-for-nerc/</link>
<comments>https://theelectricityhub.com/a-busy-couple-of-weeks-for-nerc/#respond</comments>
<dc:creator><![CDATA[]]></dc:creator>
<pubDate>Fri, 26 Nov 2021 11:23:44 +0000</pubDate>
<category><![CDATA[Distribution]]></category>
<category><![CDATA[Watt Page]]></category>
<category><![CDATA[West Africa]]></category>
<category><![CDATA[Consumers]]></category>
<category><![CDATA[DisCos]]></category>
<category><![CDATA[GenCos]]></category>
<category><![CDATA[NBET]]></category>
<category><![CDATA[NERC]]></category>
<guid isPermaLink="false">https://theelectricityhub.com/?p=64990</guid>
<description><![CDATA[<p>The past two weeks week have been busy for the Nigerian Electricity Regulatory Commission (NERC). NERC has kept stakeholders watching with keen interest as it has had to play down… </p>
<p>The post <a href="https://theelectricityhub.com/a-busy-couple-of-weeks-for-nerc/">A Busy Couple of Weeks for NERC</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></description>
<content:encoded><![CDATA[<p>The past two weeks week have been busy for the Nigerian Electricity Regulatory Commission (NERC). NERC has kept stakeholders watching with keen interest as it has had to play down the news of a hike in meter prices, renew the license of the Nigerian Bulk Electricity Trader (NBET) and propose amendments to major regulations affecting consumers.</p>
<p>On the issue of the renewal of the license of NBET, opinions have varied on the decision of NERC. The NBET was initially set up as a bulk trader for electricity from the Generation Companies (GenCos); the NBET was to run for ten years, easing the transition from a newly privatised sector to a fully competitive market. But, unfortunately, the key responsibilities of the NBET have not been achieved in the last ten years owing to unresolved sector challenges, including the crippling liquidity crunch.</p>
<p>The NBET was capitalised with about $600 million to make up for any shortfall in invoice payments by the Distribution Companies (DisCos); this has not been the case. The DisCos currently make about 30% remittances, making it impossible for NBET to sustain shortfall payments for GenCos invoices. In addition to this, the Central Bank of Nigeria (CBN) electricity market interventions structured through the NBET have called into question the financial capability of the agency to carry out its responsibilities to the market. Now the question is, given the performance of the NBET on its duties as a bulk electricity trader, did NERC err in its decision to renew NBET’s license and what are the implications for the electricity market going forward?</p>
<p>The recent increase in the cost of electricity meters has received widespread attention, with stakeholders calling the regulatory agency’s decision insensitive. NERC approved the increase in the price of single and three-phased meters for electricity consumers owing to ”macroeconomic factors” beyond its control. While it is understandable that the Commission cannot sustain a price control on electricity meters, it is questionable that despite government metering interventions, including the National Mass Metering Programme (NMMP), more than 50% of electricity consumers are still unmetered. The country continues to deal with an acute shortage of electricity meters. The question that comes to mind is, why is NERC increasing the cost of meters despite the overwhelming inability of the DisCos or Meter Asset Providers (MAP) to meet the increasing demand for meters?</p>
<p>On a good note, the Commission also <a href="https://theelectricityhub.com/nigeria-nerc-to-review-five-consumer-regulations/">announced</a> its review of five consumer-related regulations during the week. The regulations include the Customer Complaints Handling Standard and Procedures Regulations (2006), the Connection and Disconnection Procedures for Electricity Services (2007), the Meter Reading, Billing, Cash Collections and Credit Management for Electricity Supplies Regulations (2007), the Customer Service Standard of Performance for Distribution Companies (2007), and the Methodology for the Determination of Connection Charges for Electricity Supply Regulations (2012).</p>
<p>The post <a href="https://theelectricityhub.com/a-busy-couple-of-weeks-for-nerc/">A Busy Couple of Weeks for NERC</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
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<title>NIGERIA: Consumer Groups Call on the FG to Fix Electricity Problems</title>
<link>https://theelectricityhub.com/nigeria-consumer-groups-call-on-the-fg-to-fix-electricity-problems/</link>
<comments>https://theelectricityhub.com/nigeria-consumer-groups-call-on-the-fg-to-fix-electricity-problems/#respond</comments>
<dc:creator><![CDATA[]]></dc:creator>
<pubDate>Mon, 14 Jun 2021 07:16:43 +0000</pubDate>
<category><![CDATA[Distribution]]></category>
<category><![CDATA[News]]></category>
<category><![CDATA[West Africa]]></category>
<category><![CDATA[Consumers]]></category>
<category><![CDATA[Electricity supply]]></category>
<category><![CDATA[Federal Government]]></category>
<category><![CDATA[NCPC]]></category>
<guid isPermaLink="false">https://theelectricityhub.com/?p=58572</guid>
<description><![CDATA[<p>Consumer groups call on the FG to fix sector issues Poor electricity impacts negatively on businesses Ask NERC to sit up President, Nigeria Consumer Protection Network (NCPN), Kunle Olubiyo, has… </p>
<p>The post <a href="https://theelectricityhub.com/nigeria-consumer-groups-call-on-the-fg-to-fix-electricity-problems/">NIGERIA: Consumer Groups Call on the FG to Fix Electricity Problems</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></description>
<content:encoded><![CDATA[<ul>
<li><!--[if lt IE 9]><script>document.createElement('audio');</script><![endif]-->
<audio class="wp-audio-shortcode" id="audio-58572-1" preload="none" style="width: 100%;" controls="controls"><source type="audio/mpeg" src="https://theelectricityhub.com/wp-content/uploads/2021/06/NG-Consumer-Groups.m4a?_=1" /><a href="https://theelectricityhub.com/wp-content/uploads/2021/06/NG-Consumer-Groups.m4a">https://theelectricityhub.com/wp-content/uploads/2021/06/NG-Consumer-Groups.m4a</a></audio>
<p>Consumer groups call on the FG to fix sector issues</li>
<li>Poor electricity impacts negatively on businesses</li>
<li>Ask NERC to sit up</li>
</ul>
<p>President, Nigeria Consumer Protection Network (NCPN), Kunle Olubiyo, has asked the Federal Government to urgently fix that issues in the Nigerian Electricity Supply Industry (NESI). In addition, Mr Olubiyo has asked the Federal Government to revisit the privatisation process and correct the failures of the process. ”There is no better time than now to review the privatisation programme. It was hurriedly packaged in 2013”, he said.</p>
<p>He urged the Nigerian Electricity Regulatory Commission (NERC) to sit up to its responsibilities as a regulator in the sector. According to Mr Olubiyo, the Federal Government should call on stakeholders to discuss the pressing issues. ”There is no better time than now for the government to bring all the stakeholders together to know whether the limitation is as a result of aged equipment or deliberate load rejection. The regulator needs to sit up”, he said.</p>
<p>The Independent Petroleum Marketers Association of Nigeria (IPMAN), National Vice President, Alhaji Abubakar Maigandi, has also lamented the problems in the sector. He said epileptic supply had impacted negatively on small businesses, with the cost of supply increasing daily.</p>
<p>The post <a href="https://theelectricityhub.com/nigeria-consumer-groups-call-on-the-fg-to-fix-electricity-problems/">NIGERIA: Consumer Groups Call on the FG to Fix Electricity Problems</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
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<title>The Devil You Know…</title>
<link>https://theelectricityhub.com/the-devil-you-know-is-better-than-the-angel-you-dont-know/</link>
<comments>https://theelectricityhub.com/the-devil-you-know-is-better-than-the-angel-you-dont-know/#respond</comments>
<dc:creator><![CDATA[]]></dc:creator>
<pubDate>Fri, 28 May 2021 09:31:06 +0000</pubDate>
<category><![CDATA[Distribution]]></category>
<category><![CDATA[Watt Page]]></category>
<category><![CDATA[Consumers]]></category>
<category><![CDATA[DisCo-consumer relationship]]></category>
<category><![CDATA[DisCos]]></category>
<category><![CDATA[tariff bands]]></category>
<guid isPermaLink="false">https://theelectricityhub.com/?p=57403</guid>
<description><![CDATA[<p>There’s a popular saying that the devil you know is better than the angel you don’t know, but with the way electricity consumers complain about ‘NEPA’ not giving them light,… </p>
<p>The post <a href="https://theelectricityhub.com/the-devil-you-know-is-better-than-the-angel-you-dont-know/">The Devil You Know…</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></description>
<content:encoded><![CDATA[<p>There’s a popular saying that the devil you know is better than the angel you don’t know, but with the way electricity consumers complain about ‘NEPA’ not giving them light, it proves they don’t even know their devils.</p>
<p>Since the Nigerian electricity sector does not seem to have any particular ‘angel’ at the moment, you would think that consumers are at least familiar with their ‘devils’ (the Distribution Companies). Electricity consumers still refer to NEPA as being responsible for supply; completely unaware of the Distribution Companies (DisCos) and their franchise areas.</p>
<p>This oblivion is the major cause of the poor DisCo-consumer relationship in the value chain. With customers not knowing their DisCos, many issues arise, including customers’ lackadaisical attitude towards electricity sector issues, customers not knowing their rights, customers not aware of complaint redress mechanisms.</p>
<p>So why say the devil you know is better than the angel you don’t know when you don’t even know your alleged devil. Activities such as The Electricity Hub’s Consumer Engagement Programmes have helped educate electricity consumers across the country on issues critical to the value chain. These engagement Programmes consist of forums and dialogues between Distribution Companies and consumers and cover a wide range of electricity sector issues such as consumers’ franchise areas, the Order on the Capping on Estimated Billing, tariff bands, consumer <a href="https://theelectricityhub.com/rights-and-responsibilities-of-an-electricity-customer/">rights</a> and responsibilities, among others.</p>
<p>A more informed consumer base gives room for improvement in the sector, <a href="https://theelectricityhub.com/the-importance-of-electricity-data/">ensured accountability is demanded from the DisCos</a>, and allows for the proper redressing of issues across distribution service units. Essentially, consumers should know their Distribution Companies so issues can be directed properly. After all, the devil you know…</p>
<p>The post <a href="https://theelectricityhub.com/the-devil-you-know-is-better-than-the-angel-you-dont-know/">The Devil You Know…</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></content:encoded>
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</item>
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<title>Customer Connection and Disconnection Procedures</title>
<link>https://theelectricityhub.com/customer-connection-and-disconnection-procedures/</link>
<comments>https://theelectricityhub.com/customer-connection-and-disconnection-procedures/#respond</comments>
<dc:creator><![CDATA[]]></dc:creator>
<pubDate>Fri, 28 May 2021 08:13:55 +0000</pubDate>
<category><![CDATA[Distribution]]></category>
<category><![CDATA[Off-Grid]]></category>
<category><![CDATA[On-Grid]]></category>
<category><![CDATA[Watt Page]]></category>
<category><![CDATA[West Africa]]></category>
<category><![CDATA[Connection]]></category>
<category><![CDATA[Consumers]]></category>
<category><![CDATA[Disconnection]]></category>
<category><![CDATA[DisCos]]></category>
<category><![CDATA[NERC]]></category>
<category><![CDATA[Nigeria]]></category>
<category><![CDATA[Nigerian power sector]]></category>
<guid isPermaLink="false">https://theelectricityhub.com/?p=57399</guid>
<description><![CDATA[<p>Have you ever returned home after a hard day at work to find you have been disconnected from the electricity supply network? As a new homeowner, do you want to… </p>
<p>The post <a href="https://theelectricityhub.com/customer-connection-and-disconnection-procedures/">Customer Connection and Disconnection Procedures</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></description>
<content:encoded><![CDATA[<p>Have you ever returned home after a hard day at work to find you have been disconnected from the electricity supply network? As a new homeowner, do you want to be connected to a Distribution Company (DisCo) network and unsure how to go about it? Have you finally decided to transition to renewable energy and need to be disconnected from the on-grid supply network?</p>
<p>The Connection and Disconnection Procedures for Electricity Services regulation lays down the procedures for the connection and disconnection to a DisCos network. The regulation provides the procedures for the connection to and disconnection from a DisCos electricity network.</p>
<p><strong><em><span data-preserver-spaces="true">Do you want to connect to a DisCo network?</span></em></strong></p>
<p><span data-preserver-spaces="true">To connect to a DisCo network, you must do the following</span></p>
<ul>
<li><span data-preserver-spaces="true">Submit an application to the DisCo for connection </span></li>
<li><span data-preserver-spaces="true">Provide a declaration of supply requirements completed by the appropriate authority</span></li>
<li><span data-preserver-spaces="true">Accept the terms and conditions of the DisCo for connection</span></li>
<li><span data-preserver-spaces="true">Provide verifiable identification and address information to the DisCo</span></li>
<li><span data-preserver-spaces="true">Pay all charges as required by the DisCo</span></li>
</ul>
<p><span data-preserver-spaces="true">When all the above terms are met, the DisCo will connect the consumer to the network within the mandated timeframe. However, a DisCo must ensure that the applicant’s electrical installations comply with safety regulations before connection to the network.</span></p>
<p><strong><em><span data-preserver-spaces="true">Have you been disconnected by a DisCo?</span></em></strong></p>
<p><span data-preserver-spaces="true">A DisCo can disconnect a consumer with or without notice in the following situations</span></p>
<p><strong><span data-preserver-spaces="true">WITH NOTICE </span></strong><span data-preserver-spaces="true">where a consumer has not</span></p>
<ol>
<li><span data-preserver-spaces="true">paid the amount correctly billed for supply to the customer’s address within the relevant payment date </span></li>
<li><span data-preserver-spaces="true">paid an updated bill at least ten working days from the delivery date of the updated bill </span></li>
</ol>
<p><strong><span data-preserver-spaces="true">WITHOUT NOTICE</span></strong><span data-preserver-spaces="true"> where </span></p>
<ol>
<li><span data-preserver-spaces="true">a customer is illegally connected to the network of the DisCo</span></li>
<li><span data-preserver-spaces="true">the customer’s installation is dangerous to the health and integrity of the DisCos network, affects the quality of supply to other customers</span></li>
<li><span data-preserver-spaces="true">due to any act or omission by the customer, the meter within the customer’s premises is inaccessible to read </span></li>
</ol>
<p><strong><em><span data-preserver-spaces="true">Do you want to disconnect completely from a DisCo network?</span></em></strong></p>
<p><span data-preserver-spaces="true">Individuals sometimes seek alternate sources of electricity supply, e.g. renewable energy sources or self-generation. While some may decide to have both the DisCo and renewable supply, others may opt to go completely off the grid supply. For consumers who have decided to go off-grid, this regulation grants them the right to request disconnection from the DisCo network so long as there are no outstanding bills left unpaid and all necessary conditions have been met.</span></p>
<p><strong><em><span data-preserver-spaces="true">Conclusion</span></em></strong></p>
<p><span data-preserver-spaces="true">The Connection and Disconnection Procedures for Electricity Services (CDFES) has laid down the rules for connection and disconnection to a DisCos network. If you require a connection or have been wrongly disconnected, you should file a complaint at the relevant authority.</span></p>
<p>The post <a href="https://theelectricityhub.com/customer-connection-and-disconnection-procedures/">Customer Connection and Disconnection Procedures</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
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<title>Electricity; A Commodity or a Right?</title>
<link>https://theelectricityhub.com/electricity-a-commodity-or-a-right/</link>
<comments>https://theelectricityhub.com/electricity-a-commodity-or-a-right/#respond</comments>
<dc:creator><![CDATA[]]></dc:creator>
<pubDate>Mon, 10 May 2021 09:45:10 +0000</pubDate>
<category><![CDATA[Watt Page]]></category>
<category><![CDATA[Consumers]]></category>
<category><![CDATA[electricity]]></category>
<guid isPermaLink="false">https://theelectricityhub.com/?p=56217</guid>
<description><![CDATA[<p>Many people often regard electricity as a right that the government in power ought to provide without charge for its citizens. A few others believe that it is a commodity,… </p>
<p>The post <a href="https://theelectricityhub.com/electricity-a-commodity-or-a-right/">Electricity; A Commodity or a Right?</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></description>
<content:encoded><![CDATA[<p>Many people often regard electricity as a right that the government in power ought to provide without charge for its citizens. A few others believe that it is a commodity, hence should be paid for.</p>
<p>One of the primary reasons for poor electricity access in developing countries is that <a href="https://www.google.com/amp/s/www.thehindubusinessline.com/economy/electricity-must-be-treated-as-commodity-not-a-right/article33329686.ece/amp/">electric utilities in these countries seldom get fully paid for by consumers</a>, resulting in power outages and electricity rationing.</p>
<p>Electricity is a commodity capable of being bought, sold, and traded. It is not a primary energy source like coal, oil, and gas; it is a secondary energy source derived from primary energy sources.</p>
<p>For electricity to be made available, it requires several active players such as; the companies who generate the electric power, the transporters of the energy, and the suppliers who supply consumers with the electric power.</p>
<p>Electricity is an expensive yet essential commodity needed to drive the economy of a country. Should electricity be abandoned as a single man’s responsibility, it would fail, and so the country would not progress. Hence, the involvement of the government and private investors in the electricity sector.</p>
<p>To make electricity available for the masses and sustain electricity generation and supply, the government pays a subsidised amount to the sector. The balance of the subsidised power is expected to be paid by consumers of electricity based on what they consume (<a href="https://theelectricityhub.com/customer-or-consumer-which-are-you/">learn more</a>).</p>
<p>This write-up is aimed at clearing doubts and false beliefs. Electricity is a commodity provided by individuals and the state. For there to exist a steady supply of electricity, the right amount for every unit consumed ought to be accounted for and paid.</p>
<p> </p>
<p>The post <a href="https://theelectricityhub.com/electricity-a-commodity-or-a-right/">Electricity; A Commodity or a Right?</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
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<title>NIGERIA: Minor Tariff Review Hike to Take Effect 1st July</title>
<link>https://theelectricityhub.com/nigeria-minor-tariff-review-hike-takes-effect-1st-july/</link>
<comments>https://theelectricityhub.com/nigeria-minor-tariff-review-hike-takes-effect-1st-july/#respond</comments>
<dc:creator><![CDATA[]]></dc:creator>
<pubDate>Wed, 05 May 2021 07:53:32 +0000</pubDate>
<category><![CDATA[Distribution]]></category>
<category><![CDATA[News]]></category>
<category><![CDATA[Consumers]]></category>
<category><![CDATA[Minister of Power]]></category>
<category><![CDATA[NERC]]></category>
<category><![CDATA[Sale Mamman]]></category>
<category><![CDATA[tariff]]></category>
<guid isPermaLink="false">https://theelectricityhub.com/?p=56211</guid>
<description><![CDATA[<p>NERC recently concluded the minor review process FG assured Nigerians of no increase in tariff Says it is committed to FG/Labour Committee report The Nigeria Electricity Regulatory Commission (NERC) is… </p>
<p>The post <a href="https://theelectricityhub.com/nigeria-minor-tariff-review-hike-takes-effect-1st-july/">NIGERIA: Minor Tariff Review Hike to Take Effect 1st July</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></description>
<content:encoded><![CDATA[<ul>
<li><audio class="wp-audio-shortcode" id="audio-56211-2" preload="none" style="width: 100%;" controls="controls"><source type="audio/mpeg" src="https://theelectricityhub.com/wp-content/uploads/2021/05/Nigeria-Minor-....m4a?_=2" /><a href="https://theelectricityhub.com/wp-content/uploads/2021/05/Nigeria-Minor-....m4a">https://theelectricityhub.com/wp-content/uploads/2021/05/Nigeria-Minor-....m4a</a></audio>
<p>NERC recently concluded the minor review process</li>
<li>FG assured Nigerians of no increase in tariff</li>
<li>Says it is committed to FG/Labour Committee report</li>
</ul>
<p>The Nigeria Electricity Regulatory Commission (NERC) is set to implement the just concluded Minor Review of electricity tariffs. The review is set to take effect on July 1st, 2021. The review takes into account economic factors such as inflation and forex.</p>
<p>The Minister of Power Sale Mamman had previously <a href="https://twitter.com/EngrSMamman/status/1388212427259617284">refuted</a> claims that there would be a tariff increment. ”My Fellow Nigerians, There is NO plan to significantly raise Electricity Tariffs! Instead of a significant hike in electricity tariff, Nigerians should expect an increase in efficiency in the sector to reduce tariffs while managing headwinds from foreign exchange and inflation” the Minister said.</p>
<p>Mamman also assured Nigerians of the government’s commitment to resolutions reached by the FG/Labour Committee on the Electricity Tariffs. ”The Buhari administration remains faithful to the adopted resolutions from the Joint FGN-NLC/TUC Technical Committee on Electricity Tariffs” the Minister said.</p>
<p>This increment comes on the heels of <a href="https://theelectricityhub.com/nigeria-consumers-groups-kick-against-tariff-increments/">agitations</a> by consumer groups on the planned increment. The National Coordinator, All Electricity Consumers Protection Forum (AECPF) Mr. Adeola Samuel-Ilori, had recently condemned the planned increment saying “There is no justification for any increment in electricity at this point in time. We are even thinking of how government can give electricity credits to Nigerians to ameliorate their plights”.</p>
<p>The post <a href="https://theelectricityhub.com/nigeria-minor-tariff-review-hike-takes-effect-1st-july/">NIGERIA: Minor Tariff Review Hike to Take Effect 1st July</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
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<title>Understanding the Service Reflective Tariffs (SRT)</title>
<link>https://theelectricityhub.com/understanding-the-service-reflective-tariffs-srt/</link>
<comments>https://theelectricityhub.com/understanding-the-service-reflective-tariffs-srt/#comments</comments>
<dc:creator><![CDATA[]]></dc:creator>
<pubDate>Thu, 29 Apr 2021 09:39:34 +0000</pubDate>
<category><![CDATA[Distribution]]></category>
<category><![CDATA[Reviews]]></category>
<category><![CDATA[Consumers]]></category>
<category><![CDATA[DisCos]]></category>
<category><![CDATA[Metering]]></category>
<category><![CDATA[NERC]]></category>
<category><![CDATA[SRT]]></category>
<category><![CDATA[Tariffs]]></category>
<guid isPermaLink="false">https://theelectricityhub.com/?p=56032</guid>
<description><![CDATA[<p>The recent report by the World Bank on the status of the Nigerian electricity market shows, 82% of Nigerian electricity consumers, do not know what tariff classification band they fall… </p>
<p>The post <a href="https://theelectricityhub.com/understanding-the-service-reflective-tariffs-srt/">Understanding the Service Reflective Tariffs (SRT)</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></description>
<content:encoded><![CDATA[<p>The recent <a href="https://theelectricityhub.com/nigeria-world-bank-report-releases-report-on-nigerias-power-sector/">report</a> by the <a href="https://theelectricityhub.com/nigeria-world-bank-report-releases-report-on-nigerias-power-sector/">World Bank</a> on the status of the Nigerian electricity market shows, 82% of Nigerian electricity consumers, do not know what tariff classification band they fall into. This shows a total disconnect between the power sector policies and consumer sensitization. For the benefit of consumers, we will take a summary look at the Service Reflective Tariffs.</p>
<h3><strong><em>What is a Service Reflective Tariff?</em></strong></h3>
<p>Service Reflective Tariffs (SRT) are the tariffs approved by the Nigeria Electricity Regulatory Commission (NERC), which is based on the duration of supply. The NERC has approved six distinct Bands (R1 and Bands A-E) for the classification of electricity consumers. The hours of supply determine the tariff for each Band.</p>
<p>For example, Customer A who lives in Maitama, Abuja, has a total of at least 23 hours of electricity supply daily and on the other hand, Customer B who lives in Karu, Abuja, receives between 12 and 16 hours of electricity daily. Based on the approved SRT, Customer A will be charged a higher tariff than Customer B because he receives a higher supply compared to Customer B.</p>
<p>The NERC approved SRT Bands are as follows:</p>
<ol>
<li><strong>Lifeline</strong></li>
<li><strong>Band A</strong> – 20 Hours and above</li>
<li><strong>Band B</strong> – 16 Hours and above (But less than 20 hours)</li>
<li><strong>Band C</strong> – 12 Hours and above (But less than 16 hours)</li>
<li><strong>Band D</strong> – 8 Hours and above (But less than 12 hours)</li>
<li><strong>Band E</strong> – 4 Hours and above (But less than 8 hours)</li>
</ol>
<h3><strong><em>Pros and Cons of a Service Reflective Tariff</em></strong></h3>
<p>The implementation of a Service Reflective Tariff (SRT) may impact both consumers and the Distribution Companies (DisCos) in different ways.</p>
<p><strong>Pros</strong></p>
<ul>
<li>Consumers now have a fair sense of supply expectations.</li>
<li>Commercial customers will be able to reduce the electricity costs in the production process.</li>
<li>On the part of the DisCos, an improvement in DisCos supply to consumers barring any unforeseen issues relating to the national grid.</li>
<li>The securitization of DisCos revenue accrued from the tariffs will ensure an improvement in network infrastructure.</li>
<li>The liquidity crisis of the sector will be addressed.</li>
<li>The government will stop subsidizing the electricity consumption of customers who can afford to pay the full tariff.</li>
<li>The market may see an increase in the minimum remittances of the DisCos.</li>
</ul>
<p><strong>Cons</strong></p>
<ul>
<li>Consumers will be charged higher for electricity consumption.</li>
<li>DisCos may prioritize service delivery to areas where a return on investment is guaranteed i.e. areas where supply is higher.</li>
<li>There is still no assurance on the reliability of supply.</li>
<li>Inadequate metering infrastructure may mean, DisCos continue with the practice of estimated billing.</li>
<li>Unmetered consumers may likely see an increase in outrageous billing based on the new tariff rates.</li>
<li>The high cost of living may impact tariff affordability for many Nigerians.</li>
</ul>
<p>While the implementation of the new tariff offers hope to many Nigerians on the realization of 24 hours of electricity supply. In order to successfully implement the new SRT structure, two things must be in place; adequate metering and reliable network infrastructure. With more than 50% of electricity consumers unmetered, the cost of significantly reducing Collection and Technical Losses comes at a high price both to the DisCos (CAPEX) and the consumers (Tariff).</p>
<p> </p>
<p>The post <a href="https://theelectricityhub.com/understanding-the-service-reflective-tariffs-srt/">Understanding the Service Reflective Tariffs (SRT)</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
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<title>Are You Conversant with Your Customer Class?</title>
<link>https://theelectricityhub.com/are-you-conversant-with-your-customer-class/</link>
<comments>https://theelectricityhub.com/are-you-conversant-with-your-customer-class/#respond</comments>
<dc:creator><![CDATA[]]></dc:creator>
<pubDate>Fri, 05 Feb 2021 09:23:57 +0000</pubDate>
<category><![CDATA[Watt Page]]></category>
<category><![CDATA[Consumers]]></category>
<category><![CDATA[DisCos]]></category>
<category><![CDATA[MYTO]]></category>
<guid isPermaLink="false">https://theelectricityhub.com/?p=54024</guid>
<description><![CDATA[<p>In our day to day activities, we often tend to wonder what our electricity distributors mean when they refer to customer class. Out of the box, it is assumed they… </p>
<p>The post <a href="https://theelectricityhub.com/are-you-conversant-with-your-customer-class/">Are You Conversant with Your Customer Class?</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></description>
<content:encoded><![CDATA[<p>In our day to day activities, we often tend to wonder what our electricity distributors mean when they refer to customer class. Out of the box, it is assumed they are referring to where you reside or your pocket value. That is not the answer in any way.</p>
<p>The Electric Power Sector Reform Act requires that electricity tariffs be regulated, solely to establish fairness and compensation for all players in the sector, including the electricity customer (<a href="https://theelectricityhub.com/rights-and-responsibilities-of-an-electricity-customer/">learn more</a>).</p>
<p>The Multi-Year Tariff Order (MYTO) delivers a strong tariff structure, and it classifies the electricity consumers as follows:</p>
<ul>
<li>Residential: A consumer who uses his premises wholly as a residence, be it a bungalow, flat, or a multi-storied house.</li>
<li>Commercial: A consumer who uses his premises for any purpose other than exclusively as a residence or as a factory for manufacturing goods.</li>
<li>Industrial: A consumer who uses his premises for manufacturing goods including welding and ironmongery.</li>
<li>Special: These are consumers such as agriculture and agro-allied industries, water boards, religious houses, government and teaching hospitals, government research institutes, and educational establishments.</li>
<li>Street Lighting: These are raised sources of light on the edge of a road or path in urban and peri-urban areas.</li>
</ul>
<p>These consumer classes are further sub-categorised based on the level of demand. Low demand consumers pay lower tariffs than high demand consumers. In Nigeria, commercial and industrial consumers pay the highest tariff because they demand a larger amount of electric power to produce goods and render services. Also, their engagement in industrial and commercial activities ensures that a considerable amount of income is earned from customers.</p>
<p>The reason behind the pricing is to establish fairness for both the distribution companies and the electricity consumers. Higher tariffs are usually approved by the regulator provided that prices are fair to consumers and sufficient to allow the distribution companies to finance their activities and earn revenue, as stipulated in the MYTO.</p>
<p> </p>
<p> </p>
<p>The post <a href="https://theelectricityhub.com/are-you-conversant-with-your-customer-class/">Are You Conversant with Your Customer Class?</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
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<title>Nigerians React Over Crazy Electricity Bills</title>
<link>https://theelectricityhub.com/nigerians-react-over-crazy-electricity-bills/</link>
<comments>https://theelectricityhub.com/nigerians-react-over-crazy-electricity-bills/#respond</comments>
<dc:creator><![CDATA[]]></dc:creator>
<pubDate>Fri, 29 Jan 2021 08:42:35 +0000</pubDate>
<category><![CDATA[Distribution]]></category>
<category><![CDATA[News]]></category>
<category><![CDATA[Consumers]]></category>
<category><![CDATA[electricity]]></category>
<category><![CDATA[Electricity News]]></category>
<category><![CDATA[Nigerians]]></category>
<guid isPermaLink="false">https://theelectricityhub.com/?p=53844</guid>
<description><![CDATA[<p>Mixed reactions trail crazy electricity bills Consumers allege foul play In recent times, Nigerians have complained about what they call “crazy electricity bills”. The recent tariff increases have left many… </p>
<p>The post <a href="https://theelectricityhub.com/nigerians-react-over-crazy-electricity-bills/">Nigerians React Over Crazy Electricity Bills</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></description>
<content:encoded><![CDATA[<ul>
<li><audio class="wp-audio-shortcode" id="audio-53844-3" preload="none" style="width: 100%;" controls="controls"><source type="audio/mpeg" src="https://theelectricityhub.com/wp-content/uploads/2021/01/Nigerians-React....m4a?_=3" /><a href="https://theelectricityhub.com/wp-content/uploads/2021/01/Nigerians-React....m4a">https://theelectricityhub.com/wp-content/uploads/2021/01/Nigerians-React....m4a</a></audio>
<p>Mixed reactions trail crazy electricity bills</li>
<li>Consumers allege foul play</li>
</ul>
<p>In recent times, Nigerians have complained about what they call “crazy electricity bills”. The recent tariff increases have left many Nigerians angry over the increased cost of electricity usage.</p>
<p>According to a report by the <a href="https://thenationonlineng.net/more-anger-over-crazy-electricity-bills/">Nation Newspaper</a>, Pa Isiaka, a retired civil servant lamented saying: “I get only ₦5,000 monthly as my pension. I pay my bills regularly because it was ₦5,000. My children used to help me, but unfortunately, the one that had the strength was affected by job loss occasioned by COVID-19. I was owing only ₦500 as at October 2020. Now they brought ₦27,000 for November. Because of my condition, I paid ₦3,000 out of the bill. Now they brought another ₦27,700 for December 2020. Where do they expect me to get this kind of crazy bill?”</p>
<p>Nigerians have also taken to the social networking site, Twitter, to express their frustrations with the increasing cost of electricity. One <a href="https://twitter.com/iSlimfit/status/1352941514616414209">user</a> said:</p>
<p><em> “I was shocked last night when I heard a beep from my prepaid meter AGAIN! Within a space of one month, I’ve spent close to ₦40K on electricity units. I think it’s time to do a timetable for when the freezer & ACs should be coming on. Cos IKEDC wants to send me back to my village”. </em></p>
<p>Another <a href="https://twitter.com/festusyuma/status/1347905676740333568">user</a> had this to say;</p>
<p><em>“<span class="css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0">You’ll have increased your price twice in less than half a year. 20k was 750+ </span><span class="css-901oao css-16my406 r-poiln3 r-b88u0q r-bcqeeo r-qvutc0">units,</span><span class="css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0"> now only 432 </span><span class="css-901oao css-16my406 r-poiln3 r-b88u0q r-bcqeeo r-qvutc0">units!</span><span class="css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0"> If someone has to spend over 50k in a month on </span><span class="css-901oao css-16my406 r-poiln3 r-b88u0q r-bcqeeo r-qvutc0">nepa</span><span class="css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0"> even while managing, then it’ll be better to use the money on diesel and actually have peace of mind when I use it”.</span></em></p>
<p>The pandemic and lockdown had brought untold hardship upon Nigerians and the increase in the cost of living has made things worse.</p>
<p>The post <a href="https://theelectricityhub.com/nigerians-react-over-crazy-electricity-bills/">Nigerians React Over Crazy Electricity Bills</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
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<title>Declare a State of Emergency in the Power Sector – NCPN</title>
<link>https://theelectricityhub.com/declare-a-state-of-emergency-in-the-power-sector-ncpn/</link>
<comments>https://theelectricityhub.com/declare-a-state-of-emergency-in-the-power-sector-ncpn/#respond</comments>
<dc:creator><![CDATA[]]></dc:creator>
<pubDate>Fri, 29 Jan 2021 08:18:36 +0000</pubDate>
<category><![CDATA[News]]></category>
<category><![CDATA[Consumers]]></category>
<category><![CDATA[electricity]]></category>
<category><![CDATA[electricity industry]]></category>
<category><![CDATA[Tariffs]]></category>
<guid isPermaLink="false">https://theelectricityhub.com/?p=53841</guid>
<description><![CDATA[<p>NCPN says Nigerians are paying for darkness Urges President Buhari to declare a state of emergency A group, the Nigeria Consumer Protection Network (NCPN), has called on the Federal Government… </p>
<p>The post <a href="https://theelectricityhub.com/declare-a-state-of-emergency-in-the-power-sector-ncpn/">Declare a State of Emergency in the Power Sector – NCPN</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
]]></description>
<content:encoded><![CDATA[<ul>
<li><audio class="wp-audio-shortcode" id="audio-53841-4" preload="none" style="width: 100%;" controls="controls"><source type="audio/mpeg" src="https://theelectricityhub.com/wp-content/uploads/2021/01/Declare-A-State....m4a?_=4" /><a href="https://theelectricityhub.com/wp-content/uploads/2021/01/Declare-A-State....m4a">https://theelectricityhub.com/wp-content/uploads/2021/01/Declare-A-State....m4a</a></audio>
<p>NCPN says Nigerians are paying for darkness</li>
<li>Urges President Buhari to declare a state of emergency</li>
</ul>
<p>A group, the Nigeria Consumer Protection Network (NCPN), has called on the Federal Government (FG) to declare a state of emergency in the Nigerian power sector. In a statement released by the NCPN, the group says Nigerians are paying for darkness.</p>
<p>Kayode Olubiyo, the President of NCPN, has lamented the poor state of the electricity sector saying Nigerians are paying the “Sadness reflective tariff” in relation to the recent tariff increment by the Nigerian Electricity Regulatory Commission (NERC). He alleges that over three million residents of the Federal Capital Territory (FCT) and neighbouring Nasarawa state are subject to the poor performance of the Distribution Companies (DisCos) as well as exorbitant tariffs.</p>
<p>Mr. Olubiyo pleaded with the FG to order an investigation into the failures of the Nigerian electricity sector.</p>
<p>The post <a href="https://theelectricityhub.com/declare-a-state-of-emergency-in-the-power-sector-ncpn/">Declare a State of Emergency in the Power Sector – NCPN</a> appeared first on <a href="https://theelectricityhub.com">The Electricity Hub</a>.</p>
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