Tuesday 1 November 2011

NERC Scraps Meter Maintenance Fee

The Nigerian Electricity Regulatory Commission (NERC) has finally bowed to the agitation by Nigerians for the removal meter maintenance charge by passing a resolution declaring the fee illegal.
The power regulatory commission has further directed all Power Holden Company of Nigeria (PHCN) offices nationwide to desist from collecting the fee beginning from October.
The Commission has also constituted a 10-man committee to be headed by human rights activist and lawyer, Barrister Bamidele Aturu, to conduct a public inquiry into meter procurement, metering and billing in the Nigeria Electricity Supply Industry (NESI) to unveil any under hand dealing and ensure that funds released for metering was accounted for.
A statement by the Commission at the weekend, stressed that following the resolution, electricity distribution companies were to stop collecting meter maintenance fee as part of bills collectible from the consumer, starting from October billing circle payable in November.
Meter maintenance fee has been frowned at by consumers of electricity who have queried the rationale for it as part of charges in the industry since no maintenance is required on the meters as the name suggests.
In arriving at the decision, the Commission observed that “meter maintenance fee was introduced to shore up the utility’s revenue base, following stiff opposition to tariff increase even in the face of daunting financial challenges to meet their obligations.
“As had been agreed at a previous meeting between the Commission and chief executive officers of distribution companies, the essence of the meter maintenance fee which was justifiable as a means of raising tariffs when same was frozen can no longer be justified as this has been captured by the tariff in the MYTO of 2008 and the subsidy,” the statement read in part.
Source:PM News

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