Prepaid Meter: FG approves N33bn intervention fund for Discos
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The Federal Government has approved N33 billion low interest intervention fund to support the Distribution Companies (DISCOs) in the country to buy meters and other electric power accessories.
Director General of BPE, Mr. Benjamin Dikki, who gave the hint during a Radio Nigeria Live/Phone-in Programme—Radio Link, explained that the country needs three million meters yearly.
The move according to Dikki was aimed at bridging the huge metering gap in the country. He said the country had an installed power capacity of 6,000 megawatts but was generating only about 3,000 to 4,000 megawatts, noting that revenues from the 3,000 megawatts were not sufficient to support the power infrastructure, while also assuring that when power generation increases, the fixed charge will go.
Dikki explained that, it is the initial sacrifice consumers had to make given the huge financial investment made by the new power investors who are yet to obtain adequate returns on their investments.
The BPE boss said that in line with what obtained at the initial stages of the reform in the telecoms sector when the cost of the Subscriber Identity Module (SIM) cards and telephone handsets was as high as N50,000 per SIM but has now crashed to free SIMs with air time, “the electricity fixed charge will also crash”.
Meanwhile the agency has said that the fixed charge currently borne by electricity consumers in the country would be dispensed with as soon as power generation increases to an economically sustainable level.
The Nigeria Electricity Regulatory Commission (NERC) had in May, ordered Distribution Companies (Discos) to suspend further collection of fixed charges on unconsumed electricity if power was not supplied continuously or cumulatively for 15 days in a month.
NERC Chairman, Dr. Sam Amadi, said that, “any customer who experiences continuously or cumulatively power outage for 15 days in a month will be exempted from paying the monthly fixed charge to the Electricity Distribution Company (Discos).”
The order, according to Amadi, who spoke to reporters in Abuja, took effect from May 1, 2014. He further explained that in as much as the 15 days power outage was not due to the customer’s disruption or default in paying bill, the Discos shall forego monthly fixed charge.
The decision, according to him, was based on the commission’s 2005 Act, Section 32 D and F, while he stated that the NERC has decided that the fixed charge remains an essential component of the bill. It has, however, reviewed its continued reflection in the tariff in the payment of the fixed charge in the light of several complaints by consumers, particularly the payment of the fixed charge when energy is not delivered to them.
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