NERC to SENATE: Abolition of Fixed power charges Not Possible

The Chairman of the NERC, Dr. Sam Amadi, told reporters on Monday that taking such a decision without appropriate consideration could cause a collapse in the power sector.

Dr. Amadi said that due process, which is currently ongoing, could cause a review of fixed charges to ensure free and reasonable costs to consumers.

He reiterated that the fixed charges were legal and an important part of electricity pricing framework that supports the functioning of electricity generation, transmission and distribution, without which the sector might collapse.

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On July 11, 2015, the Senate asked the NERC to abolish fixed charges paid by electricity consumers across the country.

To eliminate the negative impact and perception of the fixed charges, Dr. Amadi said the commission had mandated the distribution companies to restructure the charges to ensure that it was proportionate to actual electricity consumed.

http://www.channelstv.com/2015/08/17/electricity-fixed-charges-regulator-says-abolition-not-possible/