Fixed charges removal: Kaduna Electric assures customers of fair tariff May increase tariff by 150% – source

Fixed charges removal: Kaduna Electric assures customers of fair tariff

May increase tariff by 150% – source

By Ojo Shola, Kaduna

Managing Director and Chief Executive Officer of Kaduna Electric, Engineer Garba Haruna, has assured customers of the Company of transparent and fair business practice, just as it begins preparation for the implementation of the new tariff order recently approved by the Nigerian Electricity Regulatory Commission (NERC).

This was contained in a statement signed by the Head, Corporate Communications of the Company Abdulazeez Abdullahi copy of which was made available to GoBroadsheet on Tuesday.

The MD though not mention the new tariff in clear terms.

But unofficial sources revealed that Kaduna Electric in one of its meetings is planning to increase the tariff by 100-150 percent to cover up for removal of the fixed charges recently announced by NERC.

The statement quoted the Managing Director as saying the new tariff represents the “fairest and near-perfect” tariff regime to all stakeholders.

He further argued that the new tariff regime gives the end customers a very fair electricity tariff giving the present economic reality.

According to him, the tariff was a “product of a deep and painstaking study of the current socio-economic situation of the country and a very conservative look-ahead of the expected changes in macro-economic indices such as rate of inflation, exchange rate, gas price and generation capacity”.

The Electricity boss also noted that the tariff approved for each distribution Company comprises “the estimated share of power costs, share of transmission cost, institutional charges and distribution/retail cost”.

“The new tariff regime is not only about upward review of electricity tariff, but it aims at establishing a fair and cost reflective tariff for the entire industry. In fact, with the much expected efficiency in the industry, the tariff will take a downward trend in the fourth year”, he contended.

He also assured electricity users in the Company’s operational territory of their commitments to adequate investment in the area of network expansion and development, provision of pre-paid meters, replacement of weak and absolute equipment and improvement of the ICT facilities as required in the service level agreement with the regulatory body.

Posted from GoBroadsheet