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Nairaland Forum / Nairaland / General / Politics / Fixed Charges, Bulk Metering: NERC Bows To Senate (849 Views)
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Fixed Charges, Bulk Metering: NERC Bows To Senate by samuel25(m): 11:06am On Aug 23, 2015 |
The Nigerian Electricity Regulatory
Commission in line with a resolution
passed by the Senate ordering it to
look into complaints by consumer of
electricity over indiscriminate billing has
directed the electricity Distribution
Companies to urgently restructure their
fixed charges in order to ensure no
Nigerian is made to pay for electricity
not consumed.
The Discos have also been directed to
discontinue the practice of bulk
metering.
The Senate had in its resolution
following a motion by Senators Sam
Egwu (Ebonyi North) and David Umaru
(Niger East), entitled: “Unfair trade
practices of Electricity Distribution
Companies in Nigeria,” decried the
fleecing of Nigerians by Discos through
fixed charges and bulk metering among
others.
The upper chamber had directed NERC
to immediately abolish fixed charges on
electricity consumption, bulk metering
of villages and communities.
The lawmakers specifically ordered the
NERC to immediately stop the
collection of fixed charges as well as
ensure that the people are not made to
pay for energy not consumed.
The Commission in a seven-page
response to the Senate’s query last
week said it had asked the distribution
companies to find a way to restructure
the fixed charges such that no one
would be made to pay for electricity not
consumed.
The Chairman/Chief Executive Officer of
NERC, Sam Amadi, who signed the
letter to the Senate, a copy of which is
available on the Commission’s website,
regarding the fixed charges by Discos,
said though the fixed charges collected
was not illegal, the Commission had
been able to intervene in the matter.
Amadi said: “In recognition of the
negative impact of the fixed charge, the
commission has held several public
consultations to ascertain a measure
that will guarantee financial viability in
the industry and not expose consumers
to paying for electricity not consumed.
“Based on the intervention of the
Commission, the distribution companies
have agreed to find a way to
restructure the fixed charge such that a
consumer who does not receive
electricity supply does not pay the fixed
charge.
“This remodeling of the fixed charge will
be part of the ongoing tariff review
process being conducted by the
distribution companies.
“NERC will continue to ensure that
whatever model is presented for its
approval is fair and reasonable, and
ensures the survival of the new
electricity market and improves quality
of supply to consumers.”
On the vexed issue of bulk metering of
customers, the Commission said it is
totally in agreement with the Senate on
the need to eliminate the sharp
practice.
It said it supports the Senate’s position
that electricity consumers be metered
individually, even as it urged customers
to reject community bulk metering.
Amadi said: “The Commission agrees
with the Senate’s position on the need
to eliminate the practice of bulk billing
residential customers and replace the
practice with individual metering and
billing.
“It is important to state that the
Commission had previously abolished
bulk billing in its ruling on the VGC
Case NO: NERC/H/03/07. The case was
brought by a customer against the VGC
Estate Management and the Eko
Electricity Distribution Company in
2008. The Commission ruled in favour
of the customer.
“The decision of the Commission
stipulated that every customer is
expected to be metered individually
irrespective of the status of supply
coming into the area and the class of
billing should be on R2 or as
appropriately determined by Disco.”
Amadi added that the Commission has
however provided a leeway for
estimation in situations where
residential meters are not provided to
customers.
“This is provided in the Estimated
Billing Methodology Regulation of the
Commission,” he said:
He added: “Communities who are
placed on bulk billing should reject it
and insist on individual metering. The
Commission is in the process of
completing public consultation on a
proposal to cap the amount an
unmetered customer can pay until he
or she is metered.
“The proposal will also commit
distribution companies to strict deadline
for metering of all its customers. In the
interim, the Commission has abolished
connection of new customers without
meters.” |
Re: Fixed Charges, Bulk Metering: NERC Bows To Senate by galadima77(m): 11:10am On Aug 23, 2015 |
and all of this was okay under the pdp misrule era |
Re: Fixed Charges, Bulk Metering: NERC Bows To Senate by basisop(m): 2:16pm On Aug 23, 2015 |
Same fate awaits DSTV. |
Re: Fixed Charges, Bulk Metering: NERC Bows To Senate by scribble: 2:24pm On Aug 23, 2015 |
Op it's called spacing, learn about it Following a resolution passed by the Senate over indiscriminate billing, the Nigerian Electricity Regulatory Commission has directed the electricity Distribution Companies to urgently restructure their fixed charges in order to ensure no Nigerian is made to pay for electricity not consumed. The Discos have also been directed to discontinue the practice of bulk metering. The Senate had in its resolution following a motion by Senators Sam Egwu (Ebonyi North) and David Umaru (Niger East), entitled: “Unfair trade practices of Electricity Distribution Companies in Nigeria,” decried the fleecing of Nigerians by Discos through fixed charges and bulk metering among others. The upper chamber had directed NERC to immediately abolish fixed charges on electricity consumption, bulk metering of villages and communities. The lawmakers specifically ordered the NERC to immediately stop the collection of fixed charges as well as ensure that the people are not made to pay for energy not consumed. The Commission in a seven-page response to the Senate’s query last week said it had asked the distribution companies to find a way to restructure the fixed charges such that no one would be made to pay for electricity not consumed. The Chairman/Chief Executive Officer of NERC, Sam Amadi, who signed the letter to the Senate, a copy of which is available on the Commission’s website, regarding the fixed charges by Discos, said though the fixed charges collected was not illegal, the Commission had been able to intervene in the matter. Amadi said: “In recognition of the negative impact of the fixed charge, the commission has held several public consultations to ascertain a measure that will guarantee financial viability in the industry and not expose consumers to paying for electricity not consumed. “Based on the intervention of the Commission, the distribution companies have agreed to find a way to restructure the fixed charge such that a consumer who does not receive electricity supply does not pay the fixed charge. “This remodeling of the fixed charge will be part of the ongoing tariff review process being conducted by the distribution companies. “NERC will continue to ensure that whatever model is presented for its approval is fair and reasonable, and ensures the survival of the new electricity market and improves quality of supply to consumers.” On the vexed issue of bulk metering of customers, the Commission said it is totally in agreement with the Senate on the need to eliminate the sharp practice. It said it supports the Senate’s position that electricity consumers be metered individually, even as it urged customers to reject community bulk metering. Amadi said: “The Commission agrees with the Senate’s position on the need to eliminate the practice of bulk billing residential customers and replace the practice with individual metering and billing. “It is important to state that the Commission had previously abolished bulk billing in its ruling on the VGC Case NO: NERC/H/03/07. The case was brought by a customer against the VGC Estate Management and the Eko Electricity Distribution Company in 2008. The Commission ruled in favour of the customer. “The decision of the Commission stipulated that every customer is expected to be metered individually irrespective of the status of supply coming into the area and the class of billing should be on R2 or as appropriately determined by Disco.” Amadi added that the Commission has however provided a leeway for estimation in situations where residential meters are not provided to customers. “This is provided in the Estimated Billing Methodology Regulation of the Commission,” he said. He added: “Communities who are placed on bulk billing should reject it and insist on individual metering. The Commission is in the process of completing public consultation on a proposal to cap the amount an unmetered customer can pay until he or she is metered. “The proposal will also commit distribution companies to strict deadline for metering of all its customers. In the interim, the Commission has abolished connection of new customers without meters.” http://www.theheraldng.com/no-nigerian-must-pay-for-electricity-not-consumed-nerc-orders-discos/ |
Re: Fixed Charges, Bulk Metering: NERC Bows To Senate by IsraeliAIRFORCE: 2:48pm On Aug 23, 2015 |
Forget about these long epistles, nothing considerable will change until the Discos refund the billions FG gave them as loans to fix distribution gears and stations thereby affording Nigerians the opportunity of enjoying considerable amount of electricity without frequent abnormal interruptions. Don't forget transformer and sub-stations wahalas. The FG can't enforce this resolution as it was permissive though not compulsory including the exorbitant maintenance fee under the terms contained in the MoU. Nigerians should not be given false hope until 2018 when it is expected that things will normalize and profitability restored. |
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