
This is on the back drop of complaints from consumers, which should have been addressed at the service providers’ level, in line with the Complaints Handling Standards and Procedure.
According to Amadi, distribution companies were given a uniform template for tariff application, part of which was for them to consult with customers before submitting same to the Commission.
In a presentation on electricity tariff determination, a Senior Manager in the Market Competition and Rates Division, Aba Terab, explained components of electricity tariff ‘’as transmission charge for units of electricity delivered.
He discribed it as cost of the bulk supply points, Disco’s cost of distributing through its network and retail cost, marketing, metering, billing and collection losses as well as capital expenditure for network reinforcements and new installations.’’
He added that the objective of the current tariff review was to achieve credible tariffs, address revenue shortfalls and enable Discos to meet their obligations to customers and to also firm up commitments between Discos and customers through ownership of the process and effective consultation.
He pointed out that in considering the tariff, the Commission shall work with the Discos to minimise the disparity in tariff between the tariff classes amongst the Discos.
He informed that the reports of the Discos consultation are on the websites of the individual Discos and on NERC’s website.
“We expect comments as it is done all over the world, the comments usually become part of what will be used by the regulator to make decisions. This is a real search for tariff regime that will enable investors recover prudent cost and at the same time provide incentives for quality service for consumers ’’ Amadi said.
According to him, the commission is duty bound to ensure that only the right cost is passed to the customer. This is even as the Commission is committed to finalise approval of the tariff review applications by the end of October.
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