DisCos Defy Court Order & Senate Resolution as they Implement New Tariffs

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Despite a subsisting court order and the resolution of the Senate against the implementation of the new electricity tariffs across the country, the electricity distribution companies have commenced billing customers with the new rates, ThisDay reports.

The new tariffs, which took effect on February 1, 2016, have been reflected in March 2016 electricity bills. The distribution companies, it was learnt, have started dispatching the bills containing the new rates to post-paid customers in their respective networks.

In line with NERC’s directive, the Discos have also removed fixed charge from the new rates and retained only Value-Added Tax (VAT), thus bringing big relief to customers. With the removal of the fixed charge, the difference between the new rate and the old rate for R1 customers, who constitute the largest customer population, has reduced significantly. However, the impact of the new tariff regime will be felt mostly by manufacturers and other high demand (HD) customers, whose increment was very high

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