Busi­nesses, KEDCO set for col­li­sion over move to im­ple­ment new elec­tric­ity tar­iff

Business Day (Nigeria) - - NEWS - ADE­OLA AJAKAIYE, Kano

Busi­nesses in the commercial city of Kano are set for a show­down with the Kano Elec­tric­ity Dis­tri­bu­tion Com­pany (KEDCO) over the new elec­tric­ity tar­iff the com­pany is set to com­mence its im­ple­men­ta­tion on Wed­nes­day. The main is­sue fu­elling mis­un­der­stand­ing be­tween the two groups is what is seen by most busi­nesses in the state as the gen­eral lack of clar­ity in the process lead­ing to the new tar­iff regime KEDCO is set to im­ple­ment. The man­age­ment of the dis­tri­bu­tion com­pany has since be­gun its readi­ness to com­mence the im­ple­men­ta­tion of the re­vised elec­tric­ity tar­iff, as­sur­ing that the new ini­tia­tive will guar­an­tee qual­ity ser­vices, im­proved power sup­ply, avail­abil­ity, and re­li­a­bil­ity across Kano fran­chise ar­eas. Ac­cord­ing to the com­pany, the ‘Ser­vices - Re­flec­tive Tar­iff’ is based on guar­an­teed hours of the power sup­ply that will even­tu­ally de­liver higher hours of qual­ity ser­vice de­liv­ery, and will en­sure that all our cus­tomers get max­i­mum sat­is­fac­tion from KEDCO. The Nige­rian Elec­tric­ity Reg­u­la­tory Com­mis­sion (NERC) had ear­lier ap­proved April this year as the im­ple­men­ta­tion date for the new tar­iff regime by the 11 elec­tric­ity dis­tri­bu­tion com­pa­nies across the coun­try, but the im­ple­men­ta­tion was later shifted to July as a re­sult of pub­lic out­cry. Lat­est data ob­tained by Busi­ness­day in­di­cate that the Dis­cos have been ex­pe­ri­enc­ing tar­iff short­fall to the tune of about N545 bil­lion since the be­gin­ning of the year, a de­vel­op­ment that is trig­ger­ing the zeal for the im­ple­men­ta­tion of the new tar­iff by the com­pa­nies. How­ever, most busi­ness own­ers in Kano say they have not been fully con­sulted about the im­ple­men­ta­tion of the new tar­iff by the man­age­ment of KEDCO, an in­di­ca­tion that the im­ple­men­ta­tion of the tar­iff might not en­joy an easy sail in the state. Re­spond­ing to Busi­ness­day’s in­quiry on the pre­pared­ness of busi­nesses in the state to for the im­ple­men­ta­tion of the new tar­iff, Suleiman Umar Tofa, man­ag­ing di­rec­tor, Tofa Tex­tile, one of the medium-scale tex­tile man­u­fac­tur­ing com­pa­nies, dis­closed that most busi­nesses in the state were in the dark about the pol­icy. Suleiman, who was the im­me­di­ate past chair­man of the Bom­pai branch of the Man­u­fac­tur­ers As­so­ci­a­tion of Nige­ria (MAN), noted that in­dus­trial con­sumers of elec­tric­ity in the state want an ex­pla­na­tion on how the Dis­cos in­tend to go about it. “As, I am talk­ing to you now, the man­age­ment of KEDCO is yet to con­sult with the in­dus­trial con­sumers, like us, on the is­sue of the new tariffs. We are only just hear­ing of the pro­posed tar­iff hike in the news, like any other stake­holder. “We need to be carry along, so as to as­sure us on what will hap­pen if the com­pany is un­able to de­liver on the prom­ise made on per­for­mance. Some of the ques­tions ag­i­tat­ing our minds are what the com­pany failed to de­liver or it is de­liv­er­ing power that is be­low the qual­ity re­quire to run our plants”, he pointed out. KEDCO in a doc­u­ment ob­tained by Busi­ness­day stated that the Ser­vices- Re­flec­tive Tar­iff to be im­ple­mented is based on guar­an­teed hours of power sup­ply that will even­tu­ally de­liver higher hours of qual­ity ser­vice de­liv­ery which will en­sure that all our cus­tomers get max­i­mum sat­is­fac­tion. In the doc­u­ment signed by Ibrahim Sani Shawai, head, Cor­po­rate Com­mu­ni­ca­tions of the com­pany said that con­sumers cur­rently en­joy­ing higher hours of sup­ply are ex­pected to pay more, to com­men­su­rate with the hours of sup­ply.

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