Proposed Tariff Regime: Kaduna Electric, Stakeholders Discuss

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Kaduna Electric public consultations on the proposed extraordinary review of the the Multi Year Tariff Order (MYTO).

By KATO P. LADAN, Kaduna

In compliance with the directive of the Nigerian Electricity Regulatory Commission (NERC), Kaduna Electric has presented its proposed tariff regime to its customers and other critical stakeholders in Kaduna, Kebbi and Sokoto States.

The public consultations on the proposed extraordinary review of the the Multi Year Tariff Order (MYTO) was organized to accord customers of the company an insight into its proposed tariff before it is presented to NERC for approval.

Although the new tariff regime elicited mixed reactions during the three public consultation sessions, most commentators were not averse to having a cost reflective tariff for the nation’s electricity industry, but expressed concerns over what they call ”poor service delivery by the operators”.

Speaking during the consultation held in Kaduna on Friday, 21 February, 2020, the Chief Compliance Officer of Kaduna Electric, Engr. Lawal Lawal revealed that the review of the tariff become necessary to bridge the wide gap between the cost of generating, transmitting and distributing electricity and the current allowable tariff.

”Given the recent decision of the Federal Government to stop financing the shortfall in the cost of generation, transmission and distribution, it becomes imperative to have a near cost reflective tariff in the nation’s electricity industry”, he said.

Engr. Lawal further disclosed that Kaduna Electric is proposing a 50% upward review of it existing tariff regime to enable it covers cost of its operations.

The Company also presented the proposed tariff regime to cross section of its customers in Sokoto and Kebbi States on Saturday, 22 February, 2020.

The Company’s Head of Operations for Sokoto Kebbi and Zamfara States, Mr. Sunday Yahaya said the consultations were aimed at giving all stakeholders the opportunity to make inputs and contribute to the debates so that all interests would be accommodated.

He announced that the absence of a cost-effective tariff has stunted the growth of the nation’s electricity industry and denied the sector of the much needed investment.

Cross section of the customers interviewed appreciated the opportunity given to the to express their views and make inputs to the ongoing debates. They charged the service providers to up their performance by ensuring quality services to customers.

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