Hike In Electricity Tariff Unsettles As NLC, MAN, Consumers Fume

• Tarrif Increase Is Exploitation Of Poor Nigerians, says NLC
• New Tarrif Regime Inevitable — LCCI

By Gbenga Abulude

Consumers and different groups in the  country have kicked against the newly implemented electricity tariff rates.

Condemning the tariff hike by the power Distribution Companies (DisCos), the Nigeria Labour Congress (NLC), and Manufacturer Association of Nigeria (MAN) said it would amount to additional cost of production for businesses and further add to the hardship currently being suffered by Nigerians.

President Muhammadu Buhari approved the implementation of the proposed cost-reflective energy tariff for the Nigerian Electricity Supply Industry (NESI).

In the new tariff regime, customers on estimated billing will also not be affected as the president has ordered mass metering of consumers across the country. Also ‘poor’ residential areas would not be affected.

The Nigerian Electricity Regulatory Commission (NERC) on September 1, commenced the new rates following the approval of the Multi Year Tariff Order (MYTO) 2020 by the Nigerian Electricity Regulatory Commission (NERC).

All the seven Discos have started implementing the new rates and Power distribution companies noted the new rates are categorised by the number of hours customers are supplied electricity.

But the NLC on Tuesday, kicked against the rates adjustment, noting was dead on arrival and vowed to stop it.

The NLC in a statement signed by
its president, Mr Ayuba Wabba, described the increase as “exploitation of poor Nigerians”

Wabba said, “Each hike in electricity tariff in Nigeria was trailed by huge leap in the hours of darkness, de-metering of more Nigerians, exponential rise in incidences of estimated billing, and increased burden on citizens for the procurement of equipment and facilities for public electricity supply amidst other devious methods by DISCOs to cheat, exploit and despoil poor Nigerians.”

Wabba challenged the NERC to speak up and act in the defense of the rights of the Nigerian people.

The ManufacturerAssociation of Nigerian said the hike will add to production cost with its attendant implication on the consumers.

The Organised Private Sector (OPS) is set to meet today to take a position on the matter.

However, the Lagos Chamber of Commerce and Industry (LCCI) said the adjustment was inevitable.

Director General (LCCI), Dr Muda Yusuf, stressed that for Nigeria to get the investments in the energy sector, it’s important that the tariff remains cost-reflective.

He said: “lt is important to inspire the confidence of electricity consumers through a robust metering programme and guarantee of value for money.  Cost-reflective tariff is a difficult option, especially given the prevailing economic conditions.  But it is the most sustainable option that  would salvage the power sector and attract investment”.

Yusuf said there must be fixing of the numerous inefficiencies that characterize the entire power sector value chain for the new policy to make an impact.

A consumer, Adetayo Adegbemle blamed the Nigerian Electricity Regulatory Commission (NERC) for lacking the framework to monitor and evaluate its policies.

He tweeted, “DisCos that will not buy or fix transformers; DisCos that will not install poles; DisCos that lacks capacity. Then, let’s talk about the hypocrisy of NERC. What framework have they evolved after all these years to Monitor and Evaluate their own policies?”

While justifying the new rate, the Discos have said they will provide a path for transition to full service-based cost-reflective tariffs by July 2021.

General Manager of Corporate Communications, The Eko Electricity Distribution Company (EKEDC), Mr. Godwin Idemudia, explained that the new tariff will not affect customers that enjoy less than 12 hours of electricity supply.

He said the tariff had been designed to ensure that customers pay tariffs that are commensurate with power availability and service delivery.