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Business News

Tariff hike: Unmetered customers will be exploited by DisCos, FCCPC alleges

The proposed increase in electricity tariff by DisCos has experienced setback with the FCCPC because it will affect unmetered customers.

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Tariff hike: Unmetered customers will be exploited by DisCos – FCCPC tackles DisCos, FCCPC probes Medcontour over failed cosmetic surgeries

The proposed increase in electricity tariff by the Distribution Companies (DisCos) has experienced a setback, as the Federal Competition and Consumer Protection Commission (FCCPC) claimed it would affect unmetered customers.

During a public hearing on extraordinary tariff review application organised by the Nigerian Electricity Regulatory Commission (NERC) in Lagos, the Chief Executive Officer of the FCCPC, Babatunde Irukera, said increasing tariffs would not result into efficiency as claimed by the DisCos.

NERC, license, notice, FG owes DisCos over N500 billion to electricity Subsidy - PwC , Power: DisCos remain the weakest link, NERC Issues 8 DisCos notice for cancellation of License , DisCos respond to NERC’s threat to cancel operating license of eight DisCos 

Nairametrics had reported that the DisCos plan to increase electricity tariff in April 2020. According to the DisCos, the tariff increase would cater for revenue shortfalls in the sector and enable the electricity firms to acquire needed equipment that would improve power supply. The hike in electricity tariff is also expected to increase charges for power supply.

But Irukera said, “If you are going to promote efficiency, the only way to promote it certainly cannot be by increasing tariffs. There is absolutely no question about the fact that increasing tariffs will not in itself necessarily promote efficiencies. 

“So long as you have fewer people paying for what most use, you will not find a cost-reflective tariff. The answer cannot be burdening those few (who pay their bills) with more. What about metering? There is still a vast majority of bills that are paid today by estimation; 55 per cent of consumers are still unmetered.” 

[READ MORE: What you need to know about proposed tariff review by DisCos)

DisCos will exploit unmetered customers: Irukera argued that the tariff can’t be increased as the majority of homes in Nigeria remain unmetered. He explained that every time DisCos record a revenue shortfall, unmetered customers would be the ones to pay for it.

Irukera revealed that the Bureau of Public Enterprises (BPE) was promised by the DisCos in 2015 that they would meter more aggressively but that hasn’t been the case, as the metering gap still exists.

“They said that over the next three years, they would meter approximately 4.5 million customers. And that gave us an annual target of about 1.6 million meters.

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“How can we even find a cost-reflective tariff when more than half of your collection is based on estimation or assumption? Every time there is a revenue shortfall, those who are not metered would pay for it. And that is why estimated billing has now become another word for arbitrary billing,” Irukera said during the public hearing.

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Appointments

Standard Bank Group appoints Yinka Sanni as new Chief Executive of Africa Regions

Yinka Sanni has been appointed as Standard Bank Group’s Chief Executive of Africa Regions.

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Stanbic IBTC declares N10.4 billion interim dividend

The Standard Bank Group has announced the appointment of Yinka Sanni as the new Chief Executive of Africa Regions.

This announcement was made by the Group in a post shared via its official LinkedIn account. The bank revealed that Sanni will be replacing Sola David-Borha who is retiring after 31 years of distinguished service to the group.

His appointment will play an integral role in driving the growth of the Standard Bank Group in Africa further in the years ahead.

He is expected to build on the work of David-Borha, a renowned professional who played a key role in growing the Group’s Africa Regions portfolio in terms of capacity, market share and contribution to the group’s headline earnings.

What you should know

  • Yinka Sanni is a Fellow of the Chartered Institute of Stockbrokers of Nigeria.
  • He has served in key positions within the Stanbic Group, as the Chief Executive of Stanbic IBTC Holdings PLC, Chief Executive of Stanbic IBTC Bank PLC, Deputy Chief Executive of the Bank and Executive Director, Corporate & Investment Banking of the Bank.
  • He was also the pioneer Chief Executive, Stanbic IBTC Pension Managers Limited and the pioneer Chief Executive, Stanbic IBTC Asset Management Limited.

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Corporate Press Releases

P2P crypto marketplace, Bitzlato (BZ) partners with Lemonade Finance to ease money transfers across Africa

The partnership will enable users on the BZ platform to buy and sell bitcoins and other cryptocurrencies on the marketplace at zero cost.

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Bitzlato (BZ), the latest P2P Crypto Exchange to enter the African market, has added Lemonade.Finance, a borderless payment platform for Africa, as a payment method to its platform.

Lemonade Finance provides 100% digital payment experience for Africans to seamlessly participate in the global economy from anywhere in the world without any hassle or regardless of where they are from.

The partnership will enable users on the BZ platform to buy and sell bitcoins and other cryptocurrencies on the marketplace at zero cost.

Users in Nigeria will now be able to send Nigerian Naira (NGN) to MPESA at 0% transaction fee.

Speaking about this partnership, Ridwan Olarere, CEO, Lemonade Finance, said:

“We are excited to partner with such an innovative company like Bitzlato to connect more Africans through payment. Many Africans living on the continent face many difficulties when making payments as remittance companies charge high fees and are time-consuming. We are now providing our users with a cost-effective way of sending money to Ghana, Kenya, Uk and Europe.”

Commenting on the opportunities this provides to crypto traders on the BZ platform, Mike Lunov, CEO, BZ, said:

“This partnership will provide a much-needed gateway that enables the markets we serve to seamlessly interact with each other in a borderless and open environment. We seek to break the barriers that presently exist for cross border transfers and enable our users to generate value through the opportunities that accrue from cryptocurrencies trading. The innovation exhibited by the Lemonade platform, and the brilliance of its team assures users of top-notch, secure and reliable transfers going forward.”

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According to BZ, during the first month, BZ will refund commissions in manual mode while using Lemonade Finance, but this will be automated at the end of this period.

Following this partnership, BZ is now looking to partner with merchants in the crypto space especially in Nigeria, Ghana, South Africa that have a steady flow of Nigerian Naira (NGN) to increase liquidity on the platform.

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Take advantage of the new Lemonade Finance payment method on BZ, which offers zero transactional fees for money transfers from Nigeria into Kenya. Sign up on BZ and start trading crypto easily today.

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