By Shola Akingboye

 The Abuja Electricity Distribution Company (AEDC), has unveiled its 10-year tariff review plan to its customers in the Federal Capital Territory (FCT), Kogi, Nasarawa and Niger states jurisdiction of its operations.
The revelation was made at an extra-ordinary consultative forum, organised by the company in Abuja. The Managing Director/CEO of the AEDC, Mr Neil Croucher, who led officials of the company to the forum in the week disclosed that the proposed tariff review was to among others provide a cost reflective tariff to facilitate the attraction of private capital into the sector, since the current tariff does not cover the cost of producing and distributing electricity.
Croucher, while calling for understanding of the customers noted: “We are appealing for a marginal increment in the tariff. And if you support us in this regard, it will help us to serve you better since private capital will be attracted to this new tariff regime”.
The CEO disclosed that the sector needed massive injection of capital due to years of under investment when it was government owned. 
“AEDC needs to inject $200 million over the next five years as part of its approved capital expenditure programme”, Croucher said.
“The tariff being put forward is a regulated tariff; there is no opportunity for us to make exorbitant profits out of it. Tariffs will actually come down over the course of the ten years as the level of generation increases and losses come down”, he explained. He assured that in the medium to long term, customers will be better off with lower tariff.
Speaking further, the AEDC boss used the forum to reveal to the customers what the company had invested for the improvement of service delivery within its operating area since takeover in November, 2013, saying that the sum of N2 billion had been injected by the company with a view to improving its network assets and infrastructure.
“We will install 500,000 meters, 100,000 per annum for a period of five years after we must have completed the pilot scheme of free meter installation totalling 35,000 for which Minna in Niger state and Life Camp in FCT have been selected as test areas. These projects are currently being rolled out.”
“Electronic vending system is also in the offing where customers can pay their bills via the internet by logging on to our website, POS terminals, etc”, he added.
Responding, some of the customers at the meeting, though laments the economic situation in the country, however, said they would support the marginal increase if it will bring about improvement in power supply to their areas, even though as expected, other customer with divergent views expressed reservations about the increase in tariff, noting that power supply should improve before they are asked to pay more.
But the Managing Director of the electricity distribution company in his reaction, encouraged his customers to see the review as a sacrifice that will make the sector look more attractive for a better service delivery. Croucher revealed that, even at the proposed tariff, they (customers) would still pay less than the cost of running their diesel or petrol generators. He reiterated that AEDC’s 10-year tariff plan ensures that the tariff actually goes down in real terms over the years, making the customers better off at the end of the day.

 However, this consultatition is coming on the heel of the three-day sensitization consultative forum held in mid-July,  with electricity consumers across its franchise area on the planned tariff review. After the public consultations, the company submitted its 10-year tariff to the Nigerian Electricity Regulatory Commission (NERC), but the Commission asked the AEDC to hold an extra-ordinary public consultation on the proposed tariff ahead of its expected approval at the end of this month.