*NLC, TUC Give NERC Sunday To Reverse Hike
NIGERIANS have flatly rejected the minimal tariff reduction by the Nigerian Electricity Regulatory Commission’s (NERC) reduction of the tariff payable by Band A customers from N225/kWh to N206.8/kWh, urging a reversal of the entire increase.
The Nigeria Labour Congress(NLC), Trade Union Congress (TUC), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), electricity consumers and civil society organisations have rejected the reduction, which they saw as insignificant, and called for a reversal of the tariff.
Recall that the NERC raised the electricity tariff for Band A customers from N68/kWh to N225/kWh, representing about a 240 per cent increase.
Subsidy on electricity was withdrawn completely from the tariff of consumers in the Band A category, which constitutes about 15 per cent of the total 12.82 million power consumers across the country.
Based on the tariff hike, the Federal Government said it would save N1.5trillion, noting that the decision took effect from April 3, this year.
Many Nigerians have kicked against the hike, including the House of Representatives, which called on the NERC to suspend forthwith, its implementation nationwide, while organised labour issued a two-week ultimatum demanding the reversal of the tariff hike.
But the Minister of Power, Adebayo Adelabu, during an investigative hearing held by the Senate Committee on Power, insisted that there would be nationwide blackout in the next three months if the increase in electricity tariff was not implemented.
NERC, in a statement announcing the eight per cent reduction for Band A customers, said this was a result of changes in macro-economic indices in April, especially the appreciation of the naira against the dollar in the foreign exchange market.
In compliance to the order, the Abuja, Ikeja, and Ibadan distribution companies have announced a reduction in tariffs.
The Ikeja Electricity Distribution Company (IKEDC), in a notice, said: “Dear esteemed customers, please be informed of the downward tariff review of our Band A feeders from N225/kWh to N206.80/kWh effective 6th May 2024 with guaranteed availability of 20-24hrs supply daily.
“The tariff for Bands B, C, D, and E remains unchanged”.
Also, the Ibadan DisCo said: “Customers using prepaid meters will be the first to experience the revised tariff- N206.80/kWh whenever they vend this month of May, while for post-paid customers, the revised tariff will reflect in the electricity bills to be received at the end of May 2024.”
NERC expressed its dedication to maintaining a regulatory environment that balances the interests of the consumers with the sustainability of the electricity supply industry, saying the tariff reduction was part of its ongoing efforts to ensure that electricity remained affordable for Nigerians, while also encouraging efficiency and improvement in service delivery by the distribution companies.
The statement read: “Under the tariff methodology adopted by the NERC, a revised tariff order covering the month of May 2024 has been issued by the Commission to the 11 electricity distribution companies.
“The Commission has considered changes in the macroeconomic parameters over the preceding month of April 2024 and especially the appreciation of exchange rates, consequently the Commission has approved a downward review of end-user tariffs for Band “A” customers from NGN225/kWh to NGN206.8/kWh.
“The Commission reaffirms its commitment to providing a balanced and effective regulatory regime serving the needs of the Nigerian electricity supply industry.”
THE NLC, and its Trade Union Congress of Nigeria, TUC, counterpart, had given the NERC until May 12 to withdraw the hike or face unprecedented industrial action.
The letter read: “This is to refer you to our May Day address where we expressed grave concerns regarding the recent announcement of an astronomical hike in electricity tariff across the nation from N65/kWh to N225/Kwh by your commission.
“We believe that this decision is not just morally reprehensible considering the difficulties Nigerians are faced with currently, but it blatantly disregards fundamental principles and statutory obligations.
“It is a slap in the face of justice and fairness, and we will not stand idly by as the masses and workers are subjected to such unacceptable exploitation.
“As the regulator of the electricity sector, it is imperative that your Commission grasps the weight of its responsibilities. NERC’s role entails the regulation of electricity tariffs in the country, a duty outlined in explicit detail within the statutes governing the commission.
“Yet, with this recent tariff hike, which you have acquiesced, it is evident that the Commission has forsaken its duty and abandoned the people it was meant to protect to the fat cats in the electricity industry.
“We are miffed that NERC has become a tacit collaborator in crafting the oppressive pricing regime being perpetuated against Nigerian workers and people. The Laws that set up the commission mandate it to act as an unbiased ombudsman in the electricity industry. “Unfortunately, the reverse is the case, as it has acted in cahoots with the Distribution Companies (DisCos) and the Generating Companies (GenCos) to promote their nefarious market practices.
“The announced tariff hike not only defies the established procedure mandated by law but also tramples upon the rights of Nigerian citizens. It is a flagrant abuse of power and a clear violation of the trust bestowed upon your commission by the Nigerian people. Such actions will not be tolerated, and we refuse to accept them as the new norm.
“Nigerian workers and masses, led by the NLC and TUC, stand united in denouncing this injustice. We must defend the rights of our fellow citizens against exploitation.
“Therefore, we demand an immediate reversal of the hike in electricity tariff to N65/kwh, immediate cessation of the discriminatory practice of segregating electricity consumers into arbitrary bands and restoration of the supremacy of the statutes governing the conduct of operators within the electricity industry.
“We give you until Sunday, May 12, 2024, to comply. Failure to do so will result in swift and decisive action on our part, as we will not hesitate to mobilise our members and occupy all NERC’s offices and those of the DisCos nationwide until justice is served.”
