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NERC Increases Electricity Tarrifs, Scraps Fixed Charges   - Politics (5) - Nairaland

Nairaland Forum / Nairaland / General / Politics / NERC Increases Electricity Tarrifs, Scraps Fixed Charges   (55111 Views)

NERC, Directs Nigerians Without Prepaid Meters To Stop Paying Bills / Nigeria Labor Congress Protesters Shut Down Abuja Over Electricity Tarrifs / Prof Osinbajo – Nigerians Should Expect Higher Electricity Tarrifs (2) (3) (4)

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Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by mcgaius: 4:21pm On Dec 21, 2015
Samakus:
This is a welcome development. As an employee in the utility industry, I know how distraught I normally feel when customers come to me to complain bitterly about fixed charges.

For people that didn't grasp the full implications of this new tariff plan, here's a simple explanation. By the scrapping of fixed charge regime, energy consumers will only have to add #11, 10 or 12 naira to what their current charge is. For instance, if I used to be charged #2000 per month (fixed charge included), I will now be charged #1350 + 11= 1361. It means that NERC removed 700 from consumers billing and added 11. This new arrangement will no doubt benefit holders of prepaid accounts more than postpaid.

Cool!

Your assumption is wrong.Here is the implication.

1) Without Fix Charge


Ikeja DISCO for instance is currently charging N14.96 per kWh. and if an increase of N8 is made per kwh it means that the cost of power (kwh)will now be 22.96

therefor, if i want to recharge my prepaid meter with N5000

i will get 5000/22.96 = 217.77 units

2)With Fix charge

Ikeja DISCO for instance is currently charging N14.96 per kWh

therefor, if i want to recharge my prepaid meter with N5000

if i subtract 750 from 5000 i.e N5000-N750= N4250

With my N4250 balance,I can purchase my power at N14.96 per kWh which will give me 4250/14.96 =284.1 units

By then they would have shortchanged you of 284.10 units - 217.77 units= 66.33 units.

whereas N750/month fix charge worth 50 units of power its easy to access how far you are shortchanged depending on how much you recharge/month.

5 Likes

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by morningsta(m): 4:21pm On Dec 21, 2015
publicenemy:
As long as that N750 maintenance fee is deducted.

This will only affect factories.

Really? but what difference does it make at all? The factory would simply pass on the cost to the final consumers na. Simply put, you and I who are the final consumers of the products from the affected factories pay the price angry angry grin grin
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Samakus(m): 4:22pm On Dec 21, 2015
akthedream:

You are very very wrong...imagine a so called employee in the utility industry..smh..
Let me explain...
Pls pardon me as I am typing from mγ phone...


Let's assume your init charge for R2 was #12.50k ....if #9 is added...then it will be #21.50k....this willl be your new taffif...I.e..#21.50k........

How to calculate your bill...
Assuming your consumption is 100 unit....
Previously,your calculation was.....100 unit time(x) #12.50 plus(+) 750(fixed or maintaince charges plus(+) vat = monthly charge.....

Since there is increament in tarrif from assuming from 12.50....to 12.50 + 9=21.50...then Your new calculation would be ....assuming your consumption is 100unit(new reading_minus(-) old reading)...

100 time(x) #21.50 plus(+) vat= new monthly charges...
Note that the tarrisf on your current charge would have increased from e.g 12.50 to 21.50.....but the maintainance/fixed charges of #750 have been removed....
Hope you guys understand ....tthe figures are just assumption...you can substitute your old and new terrif there to get your current bills


In as much as I must admit that you are right, you didn't have to be recastinatory about it. I read the write-up hastily out of elation that energy consumers won't have to complain about the fixed charge. Your analysis was spot on. I acknowledge my error. Thanks for your perspective
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Nobody: 4:22pm On Dec 21, 2015
tunde1200:
really?
Yes bro..
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Nobody: 4:24pm On Dec 21, 2015
Samakus:



In as much as I must admit that you are right, you didn't have to be recastinatory about it. I read the write-up hastily out of elation that energy consumers won't have to complain about the fixed charge. Your analysis was spot on. I acknowledge my error. Thanks for your perspective
I meant no harm bro...I am sorry if you felt insulted..we are all here to learn from each other..like you said,you read it in a haste to its not your fault..Peace!

1 Like

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Samakus(m): 4:26pm On Dec 21, 2015
tankoy:


N6000 per month in my LGA

My guess. You're using estimated bill or you're a very heavy consumer of energy. Truth be told, Nigerians don't know how to manage and indeed economize energy consumption. That's one of the things using prepaid account will teach you.

1 Like

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by badonkadonk: 4:26pm On Dec 21, 2015
suxkill:



So you expect me to answer your question, after you've concluded that I didn't read the news.
Your sense of reasoning is shallow kid.

How does asking a question mean I have concluded?

If u cannot quote me without been unreasonable.. Kindly stay out of my mention lest I take u to school...
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by ayindejimmy(m): 4:28pm On Dec 21, 2015
Bevista:
That's fine by me,
Nigerians should learn to pay the right price for a service. That is the only incentive for investors to commit their funds for long term improvement of the sector.

The telecoms model is a good example of how appropriate pricing stimulates service, competition, jobs - and ultimately - lower prices.
whats d rite price 4 a service dat fluntuates?
Who determimes it?
What wil happen to those wit no meter dat get estimated bills, estimated increase?
The telecom sector is a wrong example cos their charges reduces overtime as their service r upgraded, but what we av
here is increases- twice this yr.
Who told u Nigerians dnt want to pay 4 wat they use?
When we pay Dstv, Gotv, Startimes and Internet Bundle bills? Hw do we enjoy al these if we dnt pay electrity bills?
Wat we dnt want to pay 4 is wat we didnt use

2 Likes

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Nobody: 4:30pm On Dec 21, 2015
mcgaius:


Your assumption is wrong.Here is the implication.

1) with fix charge


Ikeja DISCO for instance is currently charging N14.96 per kWh. and if an increase of N8 is made per kwh it means that the cost of power (kwh)will now be 22.96

therefor, if i want to recharge my prepaid meter with N5000

i will get 5000/22.96 = 217.77 units

2)Without Fix charge

Ikeja DISCO for instance is currently charging N14.96 per kWh

therefor, if i want to recharge my prepaid meter with N5000

if i subtract 750 from 5000 i.e N5000-N750= N4250

With my N4250 balance,I can purchase my power at N14.96 per kWh which will give me 4250/14.96 =284.1 units

By then they would have shortchanged you of 284.10 units - 217.77 units= 66.33 units.

whereas N750/month fix charge worth 50 units of power its easy to access how far you are shortchanged depending on how much you recharge/month.



I think you swapped fixed charge for without fixed charge...pls check and correct...
According to the new tarrif,they will remove the fixed charge completely...
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by TheFreeOne: 4:32pm On Dec 21, 2015
jice:


Your problem is blind following. How is this beneficial to either you or any? Putting it in the right perspective, this development has only taken N750 from my bills and added an estimate of N5,000. What net effect without up to 25% supply of power.

Thus is the comedy of errors that Nigeria has descended.

A lot of Nigerians lost their senses of reasoning due to blind followership hence the silence of complicity despite lack of direction by the govt and glaring sufferings in the land.

1 Like

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by publicenemy(m): 4:32pm On Dec 21, 2015
morningsta:


Really? but what difference does it make at all? The factory would simply pass on the cost to the final consumers na. Simply put, you and I who are the final consumers of the products from the affected factories pay the price angry angry grin grin

Easier to pay that way.
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by ojuu4u(m): 4:32pm On Dec 21, 2015
[quote author=OldJohn post=41209427]Nobody seems to follow the rule of law any more


[b]

This comes less than a week after the House of Representatives asked NERC to STOP plans to increase electricity tarrifs.



very unfortunate u dnt knw how country is governed. First, HOR is not executive arm of govt hence it cant issue directive to any agency. Govt or private. Even fed govt cant isue directive regarding to tariff of electricity coy in nigeria any longer cos it's solely govt agency again
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Bevista: 4:32pm On Dec 21, 2015
ayindejimmy:

whats d rite price 4 a service dat fluntuates?
Who determimes it?
What wil happen to those wit no meter dat get estimated bills, estimated increase?
The telecom sector is a wrong example cos their charges reduces overtime as their service r upgraded, but what we av
here is increases- twice this yr.
Who told u Nigerians dnt want to pay 4 wat they use?
When we pay Dstv, Gotv, Startimes and Internet Bundle bills? Hw do we enjoy al these if we dnt pay electrity bills?
Wat we dnt want to pay 4 is wat we didnt use
And I completely agree with you that Nigerians should only pay for what they use. That is why I asked for prepaid meters.

2 Likes

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by dele55: 4:32pm On Dec 21, 2015
daniska3yaro:


I doubt but I guess you will add 11 naira to the current amount of per unit e.g your former tariff is N14,so u will add N11 to it to become N26 per unit of kwh.
My thought.

1 Like

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by ratchy: 4:32pm On Dec 21, 2015
suxkill:
No light, yet they have finally increased the bill!!!



I am patiently waiting for the new bill with my Ak47.
grin grin grin grin grin grin

3 Likes

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by mcgaius: 4:33pm On Dec 21, 2015
akthedream:

I think you swapped fixed charge for without fixed charge...pls check and correct...
According to the new tarrif,they will remove the fixed charge completely...

You are right.i have done the correction
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by AmeLonRo(m): 4:35pm On Dec 21, 2015
Stopping fixed charges yet they do not read the metres or the metres malfunction or are manipulated. A PHCN staff once told me tosend readings to him on a monthly basis so he will not send high fixed charges. Well, I hope they get it right this time. It has to start with distribution and installation of prepaid metres sha. So it becomes pay as you go. If I no use light I no go pay. grin
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Olaolufred(m): 4:37pm On Dec 21, 2015
[size=14pt]This is an answer to my prayers.
From all my calculations, this new tarrif regime is cheaper.
I have been praying for this since 2012.
God answered me finally. Fixed charge is the rape charge.[/size]
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by yomi007k(m): 4:40pm On Dec 21, 2015
Bevista:
That's fine by me, as long as prepaid meters are available. Scrapping the fixed charges is also a welcome development.

As long as people only pay for what they actually consume, Nigerians should learn to pay the right price for a service. That is the only incentive for investors to commit their funds for long term improvement of the sector.

The telecoms model is a good example of how appropriate pricing stimulates service, competition, jobs - and ultimately - lower prices.

U get sense joor.
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by royallord1(m): 4:46pm On Dec 21, 2015
Alot of u guys dont knw the implication of dis junk... lets break it down...
formal cost per unit in benin distribution company = 14.82
with an increament of 9.26per kwh brings the new tarrif to 24.08kw/h
now dey scrapped fixed charge... of #750
last month i bought a #4000 worth card and was charged fixed charge of #2250 for 3 month and a credit of 105kw/h worth #1559.52 after vat has been taken...
with d new tarrif of 24.08; #4000 worth would be 157.8kw/h.... as against 105.kw/h for just #1559.
Now for those praising d removal of the fixed charge; hope u now understand?
.. APC just want to do nigerians the more u look the less you see
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Fourwinds: 4:47pm On Dec 21, 2015
Lakeshizu:
You guys should take time to read the news, it will do you good.
exactly...I fear those fixed charges....imagine using prepaid meter and u most paid certain amount whether u use lite or not...I can decide not to recharge for two months and I won't be billed according to this new regime of billing
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Fourwinds: 4:53pm On Dec 21, 2015
royallord1:
Alot of u guys dont knw the implication of dis junk... lets break it down...
formal cost per unit in benin distribution company = 14.82
with an increament of 9.26per kwh brings the new tarrif to 24.08kw/h
now dey scrapped fixed charge... of #750
last month i bought a #4000 worth card and was charged fixed charge of 2250 for 3 month and a credit of 105kw/h worth 1559.52 after vat has been taken...
with d new tarrif of 24.08; #4000 worth would be 157.8kw/h....
Now for those praising d removal of the fixed charge; hope u now understand?
.. APC just want to do nigerians the more u look the less you see
do u know u can decide not to recharge for two months when u are away and d third month when u recharge no one will bill u dat fix charge of N2250.?

3 Likes

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by dualsurvey: 4:56pm On Dec 21, 2015
What is fixed charges compared to what has just been added as increase in tariff? That increase is damn too high for crying out aloud. Over 60% increase @ a time. This is total hardship, extortion & sheer exploitation. It's like removing a thorn from ur flesh and piercing u with glowing nail.

3 Likes

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by royallord1(m): 5:00pm On Dec 21, 2015
Fourwinds:
do u know u can decide not to recharge for two months when u are away and d third month when u recharge no one will bill u dat fix charge of N2250.?
hmmmmm? how?? and wat do you mean by when u are away...
cos i believe d only time dat can happen is wen u tell d nepa guys u are not going to be around and so dey suspend ur account till u request it to b activated
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by agog: 5:06pm On Dec 21, 2015
daniska3yaro:


I doubt but I guess you will add 11 naira to the current amount of per unit e.g your former tariff is N14,so u will add N11 to it to become N26 per unit of kwh.

you are right is is more costly

2 Likes

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Fourwinds: 5:06pm On Dec 21, 2015
royallord1:

hmmmmm? how?? and wat do you mean by when u are away...
cos i believe d only time dat can happen is wen u tell d nepa guys u are not going to be around and so dey suspend ur account till u request it to b activated
when u go to recharge ur prepaid card., there is amount the NEPA deduct as fix charge..so now if u want to buy N3000 worth of energy., they won't deduct dat fix charge again.. each month thry have fix charge whether u use power or not...if u don't call will MTN take ur credit.?? remember there are/were teriff plan by network providers datu opt to and each day whether u call or not ur credit will deducted...,that is same with fix charges NEPA engage in

2 Likes

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by easy66(m): 5:07pm On Dec 21, 2015
MANY Three months have passed yet nothing has changed for better,they only continue put more burden to us.Now They Said no estimeted charges but have not supplied metres.Who Is Deceiving Who?

1 Like

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by tylerbraid(m): 5:08pm On Dec 21, 2015
Lakeshizu:
You guys should take time to read the news, it will do you good.
God bless you for this, so many illiterates on here quick to comment negatively on what they don't know of.
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by sabi99(m): 5:11pm On Dec 21, 2015
suxkill:
No light, yet they have finally increased the bill!!!



I am patiently waiting for the new bill with my Ak47.
here is d advice man, sell ur AK47 and add d money to ur business u will make more profit and have enough to pay ur bills ok, be a good boy!

1 Like

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Jesusloveyou: 5:12pm On Dec 21, 2015
jice:


Your problem is blind following. How is this beneficial to either you or any? Putting it in the right perspective, this development has only taken N750 from my bills and added an estimate of N5,000. What net effect without up to 25% supply of power.
since u can't get or use 25% of power, then u would not pay upto 750 naira in month compared to d compulsory 750 u must pay whether u use light or not, u can as well decide not to use light for one month if u don't have any money for that month, nobody wil charge u for that. Is a welcome change

3 Likes

Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by Nobody: 5:13pm On Dec 21, 2015
Even apc supporters are suffering seriously in this smelly change but they cannot complain or wail because they we will attack them if they do.
The ones I met at lagos last week were hailing me welcoming me to my hood in anticipation of crumbs for them, but all I gave them instead was continuous shouts of 'SAI BABA'!!!
Re: NERC Increases Electricity Tarrifs, Scraps Fixed Charges   by CioAngels(f): 5:13pm On Dec 21, 2015
Yet, house of reps said to STOP increase in tarrif. Who are they fooling? The smooth operator minister of power thinks he has the magic wand.

1 Like

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