7.5% VAT rate implementation begins from February

Electricity consumers in Nigeria, who are still battling with estimated billing and insufficient power supply, will pay more tariff and cost on meters beginning from this week.

Electricity Distribution companies (DisCos) have, according to checks by New Telegraph , slated February 1 to begin the implementation of 2.5 per cent increase, which had raised Value Added Tax (VAT) on meters to 7.5 per cent.

VAT on tariffs have also been adjusted to accommodate the new 7.5 per cent rate, and service charges on installment meter payments through Meter Assets Provider (MAP) will be reviewed to accommodate the new VAT charge.

The Eko Electricity Distribution Company (EKEDC), one of the two major power utility firms in Lagos, commercial hub of Nigeria, confirmed this to this newspaper yesterday, noting that from February 1, the prices of meters sold to customers under the Meter Asset Provider scheme would be reviewed to reflect the increase in VAT recently implemented by the Federal Government.

This, the EKEDC Corporate Communications General Manager, Godwin Idemudia, said in a statement, was in compliance with the 2019 Federal Government’s directive which would see an increase in VAT from 5 per cent to 7.5 per cent from the first day of February 2020.

Idemudia further stated that customers should now expect to pay “N39,765.86 (VAT inclusive) for a single-phase meter and N72,085.68 (VAT inclusive) for a three-phase meter.”

The power firm also disclosed that VAT on tariffs have been adjusted to accommodate the new 7.5 per cent rate, and service charges on installment meter payments through MAP will be reviewed to accommodate the new VAT charge.

Meanwhile, the management of Niger Delta Power Holding Company (NDPHC) has decried a situation whereby the available power it generates has not been getting to the end-users or final consumers.

Managing Director of NDPHC, Mr. Cheidu Ugbo, who said this in Oke Aro, Ogun State, maintained that his company is collaborating with the Ministry of Energy and Mineral Resources in Lagos State to find lasting solution to the challenges of stranded power and ensure that such stranded power gets to the final consumers.

According to him, “We have electricity to serve Nigerians, but it is stranded either at power stations or transmission stations like this one, because there are few challenges (which are) why people are not being serviced and the DisCos cannot pick the load from here.

“We are collaborating seriously with the Lagos State government to make sure that this available electricity gets to the end-users.”

He said the project, which includes construction of 132Kv Multi Circuit Transmission Lines, is facing the problem of Way Leave, which means a right of way to be granted by landowners to erect the transmission lines.

“The project has been on, but we have serious Way Leave challenges. We have enlisted the support of Lagos State Government and also Ogun State Government and they are actively trying to assist us to resolve the challenges along the line routes.

“We have come to see, to assess and know where the challenges are. Lagos State Government has a programme and they need to see availability of energy here and ascertain that they can actually take the energy here and make sure it gets to the consumers in Lagos State.

“After the site visit, I’m sure the commissioner has seen and he is convinced that energy here is stranded as a matter of fact because we have seven feeders going out of here that should have taken at least 100MW, but the feeders between the two distribution companies (Ibadan and Ikeja DisCos) are doing less than 30MW,” he said.

https://www.newtelegraphng.com/electricity-consumers-to-pay-more-as-discos-hike-tariffs/

If you wana know the evil in the power sector just switch off your appliances and devices, then travel for a month, when you are back, a bill of 15k is seriously waiting for you

You go to their office for complaint, they tell you don't worry just pay it, the next bill would be very less.

Next month bill, you would see like 19k. When you complain, dem go ask you if you use AC, washing machine, electric iron. You tell them no, they tell you ok, we are gonna do something about it.


It's just very bad. Paying for what you didn't use should be properly addressed by the minister of darkness.


Daylight robbery every day.

Mad Ooooooo

Pay more for utter darkness

Electricity? Really? Which electricity?

They've finally gotten the chance they have been looking for

Meanwhile nothing consign aboki with electric bill

Sai Baba......

Madddddd Nigeria... Suffer go long ooooo

too bad! obviously the government care less

Masses yaff sufad

NIGERIANS IT IS TIME TO SPEAK OUT THAT NO PREPAID METER NO INCREASE... THIS DISCOS ARE TAKING FROM US MORE GIVING US LITTLE.

OK naww

No wonder peeps keep struggling/fighting tooth ND nail to get to the helm of affairs in this country....

Fraud/day light robbery is just so much allowed in this country......I just weak for this country honestly!

Well what do I even know...

That was how I went to the studio to record a massive song today.....2mins into the record, I kept screaming MARLIAN MARLIAN"...the production manager never knew that it was just an intro before I get into the main verse...BUT before I could say jack, I saw myself being bundled outside ; they telling me I should go continue my malianship outside......

Who did I even offend in this life sef..

Ccd

Wa

You dey follow shout "School na scam" but ordinary to fill teller for bank you dey sweat. You're busy writing Eleventeen thousand, one hundred and onety one. Better goan register for the coming Junior waec
���

Even with dia crazy and nonsense bill everywhere.. SMH....

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1.7 trillion Naira in 3 years and it's no difference from the $16bn Obasanjo spent in 8 years to have darker streets, homes and rundown industries. 567m or 720m per annum, Nigeria is still dark.

Pay More government

Rubbish.


DisCos kó, Makosa ni....

Pay more for less. What a country

Na which kain wahala be this sef?

Hiking tariffs of products they don't provide.. Hallmark of a shithole

Buhari has got the highest ever revenue accruing to the FG ever in the history of Nigeria,but been the one president that has delivered the least service ever in Nigeria since 1914.
During the time of goatluck Jonathan,any of these increased would have led to nationwide protests;but since Buhari came to power fuel price has gone up,bread prices have gone up twice,all service charges now including PHCN,have gone up but Nigerians have not protested for a single day.
Nigerians obviously enjoy suffering so these price increases will continue.

SINCE the day I heard it cost $1.4 billion to generate 1000MW of electricity,I weak..



24hrs electricity in Nigeria may Never be achieved till Ekee dis con3

Trump see, Bubu don complete finishing Naija completely.

Ok

Step in the right direction..it is long overdue.

Meanwhile Op the content of your write up is at variance with your header....there is no tariff review at the moment but adjustment meter pricing as a result of the increase in VAT.

Tariff has to do with price per energy consumption in KWH using MYTO template planned for April this year.

Sensational

Let them continue hiking price, one day same electricity would hike them