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Published On: Wed, Feb 26th, 2020

Electricity Hike: Poor Nigerians to pay 35% tariff – AEDC

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By Etuka Sunday

Abuja Electricity Distribution Company (AEDC) yesterday disclosed that Poor Nigerians would be averagely paying 35 per cent in the New Electricity Tariff Review coming to full effect in April 1, 2020.
AEDC disclosed this through its Managing Director, Engr. Ernest Mupwaya during an interactive session between the AEDC Executive Management Team and the Media on the propose tariff review in Abuja.
Justifying while the propose tariff review should be given accelerated consideration, Engr. Mupwaya said, it would guarantee sufficient power supply, metering, massive investments in the network and improve service to the customers.
He noted that government support on tariff will drop from 54% to 29%, leaving 71% for the customers. He explained that the current tariff was 46% because government support was 54%, bringing the total market remittance to 100%.
He said, out of the 100% expected revenue collection from customers, AEDC keeps only 25% of the total revenue collected.
While explaining generation, administrative and distribution tariffs, he said, out of 100% expected revenue from customers, 60% goes to gas suppliers and generation companies, 15% goes to TCN, System Market Operator and NBET, while 25% goes to DisCos.
The AEDC boss said, the company needs a total of N43.02billion investment in the network to guarantee stable and reliable power supply to its customers.
“A total of 92 projects (Technical and Non-Technical) to add 89MW, improve network visibility and flexibility capacity at a total cost of N43.02 billion is required,” he said.
Giving the breakdown of select planned investment in network per State, he said, Abuja requires N31.3 billion investment, Kogi N2.3 billion, Nasarawa N2.3 billion and Niger N5.5billion respectively.
Mupwaya said, a total of 160, 832 meters has so far been installed under the company’s mass metering programme and CAPMI, saying it has also successful metered 81, 533 customers under Meter Asset Provider (MAP).
Speaking on the 4-year metering plan, the MD said, the company has a target to rollout 170, 239 meters in 2019, 330,377 in 2020, 257,373 in 2021 and 109,302 in 2022, bringing the number to 867, 291 meters.
Justifying the N20 billion capital expenditure, he said, €2.0million went into the procurement of modern commercial management systems (InCMS), 205 brand new vehicles, replaced and installed 630 faulty nd reinforcement distribution transformers totalling 208 MVA at a total cost of N903million and others.
Mupwaya dismissed the allegation of power load rejection, saying that the “regulated quantity contractually was 11.5% of National Generation but we are taking 13.5%, higher than MYTO allocation.”
He listed delay in government intervention to address sector gaps, Non-payment of Ministries, Departments and Angencies (MDAs) bills, Non-cost reflective tariff, harassment of Disco staff by some MDAs (Barracks), increase generation costs without corresponding increase in retail tariffs, insufficient energy generated and wholesale vs MYTO projected as some of the challenges being faced by the company.

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