Port Harcourt DisCo reels out new electricity service-reflective tariffs

Ben Eguzozie, in Port Harcourt

• But DisCo’s services worsen

The Port Harcourt Electricity Distribution company (PHED) has reeled out its new electricity service-reflective tariffs for its region, which covers Akwa Ibom, Bayelsa, Cross River and Rivers states.

The DisCo said its tariffs went into effect on September 1, based on the Nigerian Electricity Regulatory Commission’s (NERC) extraordinary tariff review and issuance of the multi-year tariff order (MYTO) 2020.
John Onyi, manager, corporate communications of PHED said following the MYTO, customers’ tariffs have been categorized into five bands with differentiated tariff for their current hours of availability of supply. Each of these bands has three classes of customers namely: non-maximum demand (Non-MD), MD 1 and MD 2, which represent customers previously known as residential (single and three phases), schools/churches, and Industrial customers respectively.
He said, residential customers on band A category who presently are on a minimum of 20 hours power supply per day are expected to pay N55.20, while MD customers such as schools, churches, supermarkets and street lights would pay N54.80. Also, industrial customers like manufacturing companies will pay N52.20 in the same category.
The band B category, which are customers presently on a minimum availability of 16 hours power supply, are accordingly, expected to pay an increased tariff as well as band C category representing customers on minimum availability of 12 hours of supply per day.
Onyi said, customers on bands D and E categories are those experiencing eight and four hours power supply per day, respectively; and would remain on the old tariff structure pending further directive from the regulatory body.
Meanwhile, PHED’s power supply situation has worsened in most parts of the region, forcing residents to complain bitterly about the development. In Port Harcourt, by far the biggest of its consumption area, many parts of the oil city have been without electricity supply for upward of four days. No reason was given for the appalling power situation.
Pursuant to the authority given under Section 76 of the EPSR Act 2005, NERC established a methodology for determining electricity tariff in the Nigerian Electricity Supply Industry (NESI), and subsequently issued a tariff order called the Multi-Year Tariff Order (MYTO) that sets out tariff for the generation, transmission and distribution of electricity in Nigeria. The MYTO introduced in 2008, provides for a biannual review of tariff which is carried out taking into cognisance changes in exogenous variables outside the control of the NESI such as Nigerian and United States inflation rates, NGN/USD foreign exchange rates, gas prices and available generation capacity. The purpose of the MYTO is to set cost-reflective tariffs which will allow the power sector to be properly funded and functional.
The distribution company appeals to its customers in the four states to “cooperate and support this new tariff through prompt payment of electricity bills for the mutual benefits of all stakeholders in the electricity industry.”