Electricity is an integral part of the economic and social life of any nation. However, Nigeria is still plagued with electricity concerns, from low generation, poor supply to load shedding and rationing, citizens & entrepreneurs are now familiar with the frequent power outages. In addition, with the monopoly structure of the electricity market in Nigeria, consumers are often billed for electricity not consumed in the form of ‘’estimated billing‟. Electricity is, therefore, the main infrastructural deficit affecting Small and Medium-scale Enterprises (SMEs) particularly those in manufacturing and this is holding back the full economic potential of this very important sector.
Now with the increment of Tariffs, small business owners are left to wonder how they will manage their businesses and make enough profit to thrive in the shaky economy.
Premium Times reports that, The management of the Abuja Electricity Distribution Company (AEDC) says it has started implementing its new Service Reflective Tariff Plan (SRT) across its franchise area from September 1.
Oyebode Fadipe, AEDC’s General Manager, Corporate Communications, announced this in a statement in Abuja on Tuesday.
Mr Fadipe said the SRT plan is a Nigerian Electricity Regulatory Commission (NERC) mandated tariff structure.
According to him, the increment in tariffs will result in substantially longer hours of power supply.
He said the tariff structure would also result in a good quality voltage profile, swift response to faults clearing and provision of pre-paid meters.
Mr Fadipe stated that the service reflective tariff plan is an innovative structure designed to deliver on the need for an upward review of tariff with an attendant caveat that there must be improvement of service in the power sector.
“The service reflective tariff plan signals a new approach to tariff design that is required to ensure equity and fairness in delivering quality service to customers.’’
”It also ensures that customers get good value for their money.
The new tariff design proposes an upwardly adjusted tariff for customers who are not averse to paying more to enjoy longer hours of supply, standard voltage profile and faster fault clearance timelines.
While we keep working at ensuring all classes of customers enjoy improved supply, customers who enjoy less than 12 hours of supply will not be affected by the new tariff plan.