Electricity price rises as power hits 5,000mw in 2016

Nigerians should be ready to pay more electricity bills in 2016 when the national grid is expected to hit a steady 5,000 megawatts.


The 10-year Multi-Year Tariff Order (MYTO) 2.2 submitted by the 11 electricity Distribution companies (Discos) to the Nigerian Electricity Regulatory Commission (NERC) indicates a significant increase in the Energy Charge (EC) component of consumers’ bill with a significant reduction in the Fixed Charge (FC) section of most Discos.

It is also consulting customers and members of the public in Abuja today before approving the plans submitted by the Discos.

Available statistics obtained from the MYTO 2.2 submissions of the four Discos of Abuja, Kano, Eko and Ikeja, as obtained from the NERC, showed that about 5,465mw of power may be available for distribution from January 2016. This could translate to having a minimum of 18 hours daily supply of electricity across major cities in the nation if transmission (evacuation) loss remains at a minimal of 8.05 per cent.

Customers for electricity services are classified majorly into Residential, Commercial, Industrial and Special consumers. The Residential class use their premises exclusively as a residence – house or flat. They include the R1, consuming less than 50 kilowatts hour (kwh), especially in the rural areas, or those whose energy consumption is so low and cannot afford to pay much for it. Residential 2 (R2) are those using single and three-phase connections like a two- bedroom flat. The R3 use low voltage (LV) maximum demand, with mansion owners falling into this class, while R4 users are on a high voltage of 11/33kilovolts (kv) power.

The Commercial class use their premises for business purposes. While Commercial 1 (C1) is for single and three-phase users like hair saloons, C2 is for higher capacity business operators like cold room operators. The C3 for high voltage users include water factory and other small scale factories.

The Industrial class use their premises for manufacturing. Industrial 1 (D1) are for single and three-phase like welders. Medium-scale industries and plants fall under D2, while large-scale manufacturers using high voltage fall under D3.

Daily Trust

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