Why DisCos can’t increase tariff rates on their own – EMRC

Bisola David
Bisola David
Power consumers paid N268bn electricity bills in Q2 - FG

The Energy Consultant at Energy Markets Rates and Consultants Limited, Ikhide Asuelimen, has stated that distribution companies cannot raise tariff rates on their own.

He made this comment in a podcast program that the business this week broadcast.

He said it in response to the notion that meters operate quickly after being tricked by distribution corporations.

Asuelimen claimed that distribution corporations have no direct impact on their consumers’ electricity usage. Therefore, it is false to contemplate the idea that they manipulate consumption rates.

Customers often notice a decrease in the number of units they have purchased as a result of a tariff rate hike.

“All tariff rate adjustments are made in compliance with the rules and permissions of the regulatory authority in charge of the electrical industry.”

In an effort to lower energy consumption measured by the meter, Asuelimen added that switching from a three-phase to a single-phase metre is an incorrect strategy.

“This is because it is normal to anticipate an increase in consumption when a customer’s load is significant.

“Customers with three-phase meters will notice a drop in usage if they limit their load for about a week.

“As a result, the customer’s meter’s rate of consumption is closely related to the size of their electrical load and is not determined by whether they have a single-phase or three-phase metre, he said.”

Asuelimen stated that an electricity meter’s main purpose is to determine how much power is used in certain areas.

He added that this is accomplished by examining voltage and current, two crucial distribution network metrics.

“Individual customers have just a little amount of direct control over voltage; it is primarily governed by the grid’s condition at any particular time.

“Customers can control the electrical load they attach to their meter, which has a bigger impact on the current flowing through it.”

He stated that energy units designated for consumer use are put into prepaid meters and that these energy units are gradually used up as the user connects electrical loads to the network.

“The meter automatically disconnects from the electricity source when the units run out and reach zero. To restock the units and restart their electrical supply, the customer must then start a vending process,” he concluded.


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