...NERC con­sults cus­tomers for ap­proval to­day

Daily Trust - - BUSINESS -

(ATC&C) losses, Abuja Disco said its present ATC&C at 49.22 per cent will be re­duced to 33.79 per cent in 2016 and will go down to 18.05 per cent by 2024, the tenth year. Kano Disco now has 45.0 per cent ATC&C losses but is ex­pected to re­duce them to 38.33 per cent in 2016 and to as low as 14.67 per cent by 2024.

Eko Disco has 28.32 per cent losses, which are ex­pected to go down to 20.66 per cent in 2016 and to as low as 10.32 per cent in 2024, while Ikeja Disco has 32.15 per cent but projects 23.89 per cent by 2016 and 9.182 per cent af­ter 10 years.

On their cus­tomer base, Abuja has 613,853 cus­tomers with over 90 per­cent as residential cus­tomers, while Kano has 317,973 cus­tomers with about 300,000 as residential cus­tomers. This is ex­pected to grow to 348,404 in 2016. While Eko Disco has 394,579 cus­tomers with 1,596 of them as gov­ern­ment ac­counts, Ikeja Disco has 667,931 cus­tomers with 296 of them as gov­ern­ment ac­counts.

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 three­p­hase 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.

The Spe­cial class con­sists of agri­cul­tural and agro-al­lied in­dus­tries, re­li­gious houses and public util­i­ties. They have A1 for sin­gle and three­p­hase users, A2 for low volt­age users and A3 for high volt­age de­mand.

Then there is a sep­a­rate class for street light­ing.

On cap­i­tal ex­pen­di­ture (CAPEX), Abuja Disco said it had spent N2.3 bil­lion in 2014 and is fore­cast­ing a N73.3bn spend­ing by 2024, while Kano pro­poses N4.769bn yearly dur­ing the 10-year plan pe­riod, which is over N47­bil­lion.

Eko, how­ever, in its plan said, “We have es­ti­mated that we will need a to­tal of $1.1bn in CAPEX, in ad­di­tion to the N5bn that has been spent in ac­quir­ing the EKEDC head of­fice. We ex­pect to spend N18.05bn an­nu­ally and this is in ex­cess of N141.9bn more than what was ap­proved for EKEDC in MYTO 2.2.”

The Ikeja Disco will be spend­ing N60bn in the first five years, but the en­tire plan as­sumes a to­tal of N92.8bn, which tal­lies with the MYTO as­sump­tion of N92.2bn CAPEX by 2024.

Energy and Fixed Charges for the Dis­cos Abuja tar­iff

Energy Cost (EC) is ex­pected to rise to N22.49/kilo­watt hour (kwhr) for residential 2 (R2) cus­tomers by 2016, from N14.70kwhr in 2015 (about N7.79 dif­fer­ence). This will re­duce to N21.38/kwhr in 2017. C1 will pay N34.57/kwhr in 2016 from N23.61/kwhr in 2015, a dif­fer­ence of N10.96. There will be a down­ward trend for these with a dif­fer­ence of over N2 from 2017.

The Fixed Charge (FC) now at N702 will go down to N667 from Jan­uary 2016 for R2 cus­tomers. This will con­tinue to re­duce till 2024 where it will stop at N442.50 monthly. The Com­mer­cial class will pay monthly from N667 in­stead of N702 in 2015 with the trend de­creas­ing. Kano tar­iff The Disco now has a new cus­tomer clas­si­fi­ca­tion with R2 cus­tomers clas­si­fied as R2-lite (those re­cently moved from R1 to R2); R2-Clas­sic (those with loads from 10kw to 20kw) and R2-Pre­mium (ex­ceed­ing 20kw load). R3 are those with three-phase me­ters while R4 and R5 are those with three-phase me­ters on high volt­age de­mand.

Energy Cost (EC) is ex­pected to rise to N13.49/ kwh for R2-Lite cus­tomers from Novem­ber 2015 through 2016, a de­vi­a­tion from the N13.25kwh ob­tain­able now. R2-Clas­sic gets a rise of N21.21, while R2-Pre­mium pays N30.10 This will in­crease in 2017, but will be­gin to re­duce in 2018. The Com­mer­cial class will pay from N29.40, with an in­crease to N29.93 and a de­crease trend from 2018.

Fixed Charge (FC), now at N750, will re­duce to N333 from Novem­ber 2015 through 2016 to 2024 for R2-Lite cus­tomers. R2-Clas­sic and Pre­mium will also pay a static N667 monthly. Com­mer­cial class will pay from N667 monthly in­stead of N702 early 2015 with a static trend. Eko tar­iff Eko’s Energy Cost (EC) will also rise to N19.48/kwh for R2 cus­tomers by 2016, from N18.75kwh in 2015 (about N0.73 dif­fer­ence). This will re­duce to N16.46/ kwh in 2017, but will rise from N15.12 by 2022 till 2024. The Com­mer­cial class will pay from N20.90/kwh in 2016 with a down­ward trend from 2017. This is about N1.90/kwh dif­fer­ence in what ob­tains now.

Although Eko Disco has not re­moved the fixed charge, it is the only Disco that has ad­justed it from the N750/ N702 monthly pay­ment to the per kilo­watt hour billing method. This means its cus­tomers can only pay the fixed charge only when they con­sume power.

Its fixed charge now at N750 has been con­verted in its pro­posed plan to N1.03/kwh in 2016. This will dip pos­i­tively to N0.87/kwh by 2017. The Com­mer­cial class will pay from N1.10/kwh in­cluded in their energy charge. Ikeja tar­iff The Ikeja Disco now has a new cus­tomer clas­si­fi­ca­tion with R2 cus­tomers clas­si­fied as R2-S (users of sin­gle­phase me­ters) and R2-T (users of three-phase me­ters). The same ap­plies to the Com­mer­cial (C1) class.

Its Energy Cost (EC) will rise to N19.61/kwhr for R2-S cus­tomers by 2016, and N22.20/kwh for R2-T from N18.75kwh in 2015 (about N3.5 in­crease). This will re­duce to N18.19/kwh and N20.59/kwh in 2017. The C1-S class will pay N23.61/ kwh while C1-T pays N27.80/ kwh in 2016 with a down­ward trend from 2017.

The Ikeja Disco said it has cut its fixed charge of N750 to N375 and N450 for R2-S and R2-T re­spec­tively in 2016. How­ever, it will rise to N405 and N486 by 2017 and be­yond. Its Com­mer­cial class cus­tomers will pay N375 monthly as it in­creases yearly. But by 2024, none of these cat­e­gories will have their pay­ment ex­ceed the cur­rent N750.

When con­tacted for com­ments, NERC Chair­man, Dr. Sam Amadi said the Dis­cos are all sub­mit­ting their 10-year tar­iff plan for con­sid­er­a­tion be­fore its ap­proval and im­ple­men­ta­tion. The Com­mis­sion is hold­ing a sec­ond public con­sul­ta­tion to­day in Abuja to re­view what the 11 Dis­cos have sub­mit­ted.

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