EKEDP denies increase in electricity tariff

.As NERC lists criteria for eligible customer status

Eko Electricity Distribution Plc (EKEDP), has denied plans to increase electricity tariff effective September 1, as has been reported in some sections of the media.

Such a communication, it said, can only come through the Management or the EKEDP’s website, and not by speculation in the media.

This comes even as the Nigerian Electricity Regulatory Commission (NERC), also debunked reports on the suspension of the Eligible Customer Regulations (ECR) issued by the Commission in 2018. 

In a statement debunking the unsubstantiated planned adjustment in electricity tariffs, the Managing Director, EKEDP, Adeoye Fadeyibi, urged customers to “disregard all communications that have not been issued by management or published on the company’s website,” and to channel their enquiries or complaints through the customer care.

He added that EKEDP will continue “to review effective and regulatory strategies to manage the impact of changes to macro-economic indices affecting end-user tariffs, the general public will be duly informed, in the event of any changes to the end-user tariff.”

Eligible Customer Regulations

Regarding the ECR suspension, the Commission, in a statement, clarified that the status remains open to electricity consumers across the country that comply with the provisions of the Regulations, who “may avail themselves of the bilateral contracting opportunities presented by the intent of the provisions in the EPSRA and the ECR.”

NERC said what was misinterpreted to mean a suspension was actually “a straightforward directive of the industry regulator restraining the TCN from recognising unauthorised eligible customer transactions in the market settlement statement without the prior approval of the Commission.”   

It noted that the ECR was developed and approved by the Commission, pursuant to a declaration made by the Ministry of Power, as provided under Section 27 of the Electric Power Sector Reform Act (EPSRA), which stipulates the conditions for the grant of eligibility status by the Commission.

“The Commission further issued the guidelines for filing for competitive transition charge (CTC) to account for loss of revenue by DisCos in compliance with Section 28 of the Act,” according to the statement signed by the  General Manager, Public Affairs Department, Dr Usman Abba Arabi.

It had therefore “directed all unauthorised EC transactions to revert to BILLING by the distribution companies (DisCos) operating in the franchise area where the customers are located but without disruption in supply until the customer is conferred with eligibility status pursuant to the requirement of the ECR.”

NERC further revealed that a number of eligible customer applications before the Commission are stalled by the inability of either the applicants or their potential suppliers to fulfil the conditions precedent for grant of eligibility in compliance with sections 5, 6, 23, 37 and 38, and schedules 1A & 1B of ECR.

Electricity consumers across the country that comply with the provisions of the Eligible Customer Regulations may avail themselves of the bilateral contracting opportunities presented by the intent of the provisions in the EPSRA and the ECR.

ECR eligibility

The conditions for granting EC status include:

  • Evidence of no indebtedness to DisCos: An eligible customer applicant is obligated to show that it is not indebted to the existing supplier before it can be conferred with eligibility to switch a supplier of electricity.
  • The supplier (GenCo OR trading licensee) to the potential eligible customer should possess an unencumbered generation capacity to sell to other customers.
  • Evidence of an agreement with the supplier of last resort in compliance with sections 37 and 38 of ECR. This is to ensure a continuity of supply to the eligible customer, in the event of a disruption by the contracted GenCo.

The Commission said the conditions are designed to preserve the structure and orderliness of the electricity market while opening opportunities for competition and better service for consumers.

Therefore, “Electricity consumers meeting the consumption threshold of 2MWh/h wishing to avail themselves of the opportunity of purchasing electricity from sources other than DisCos are encouraged to apprise themselves of the guiding regulations of the industry and not rely on the presumption of compliance.

“GenCos wishing to sell electricity to consumers under the eligible customer framework are mandatorily required to possess an unencumbered generation capacity for sale to other consumers.”

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