Electricity consumers yesterday kicked against a new regime of electricity tariff for the 11 electricity distribution companies (Discos) across the country, just as the People’s Democratic Party(PDP) rejected the hike.
The PDP, in a statement by its National Publicity Secretary, Kola Ologbondiyan, said the increase is draconian and against the interest of Nigerians.
Consequently, the party charged the Federal Government to immediately rescind the increase, which it described as “obnoxious and provocative”, and consult further with the citizens on the issue.
But, in a dramatic twist, the Nigerian Electricity Regulatory Commission(NERC) says no tariff increase has been approved by the Commission yet.
PDP expressed dismay that the government wants to increase electricity tariff, at a time Nigerians are still grappling with the increase in Value Added Tax( VAT) from 5 percent to 7.5 percent by the All Progressives Congress (APC) led administration.
The Nigerian Electricity Regulatory Commission (NERC) at the weekend had announced an increase in electricity tariff on its website.
Under the new tariff regime, signed by the NERC Chairman, Prof. James Momoh, and Secretary, Mr. Dafe Akpedeye.
The commission said the order super-ceded the earlier one issued on the subject matter, and “the new tariff regime takes effect from January 1, 2020.
NERC noted that the order had taken into consideration, other actual changes in relevant macroeconomic variables and available generation capacity as at October 31, 2019.
The commission said the order was in line with updating the Multi Year Tariff Order operating -2015 Tariff Order for 2019 in line with the provisions of the amended MYTO methodology.
“Projections are made for the variables for year 2020 and beyond based on the best available information .
“The commission, however, based adjustments in the tariff, on the relevant data obtained from the Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) such as average monthly inflation rate of 11.3 per cent, exchange rate of N309.97.”
Reacting to the latest hike, President of Consumer Rights Advancement Organisation, Mr. Adeolu Ogunbanjo, said the increase was a crime against consumers.
He warned that NERC shold be ready for a showdown with consumers because the level of service by the Discos was appalling and does not in anyway commensurate with service.
He said a lot of consumers were still on estimation billing and without prepaid meters, saying not until all consumers were metered, any hike by NERC would be resisted. He lamented that the hike would further impoverish consumers as their purchasing power would be further weakened considering the fragile state of the economy.
For its Part, Chairman of Magodo GRA Phase 1, Gateway Zone Community Development Association (CDA), Mr. Bode Ojomu, expressed dismay at the action of NERC, saying the general reaction of residents is that of anger and frustration over the development.
He said services have not improved while the economic strength of Nigerians was dwindling by the day, saying such could not be matched with the increase.
The Chairman said it was wrong for Government to pass the burden of its inefficiency on the citizenry, saying the Discos were only reaping where they did not sow. He said estimated billing is on the increase coupled with poor service delivery, obsolete equipment among other shortcomings of the Discos.
Ojomu said consumers are still grappling with huge estimated billing that was choking them to ‘death’ and could hardly bear to pay same.
According to the publication, for the Abuja Electricity Distribution Company residential customers R3 that were paying N27.20 per unit are to now pay N47.09.
NERC said the customers are now to pay N19.89 more per unit representing 236.75 per cent increase.
“The commercial customers C3 that paid N27.20 per unit in 2015, when the tariff was last adjusted and implemented are now to pay N47.09 in 2020,” it added.
The commission said for the Ikeja Electricity Distribution Company’s customers, the R3 category that were formerly paying N26.50 per unit is to now pay N36.92 per unit.
The customers are, therefore, to pay additional N10.02 per unit, representing 368.49 per cent increase.
“The commercial customers C3 that paid N24.63 per unit in 2015 are to now pay N38.14 per unit.
“The customers are to pay additional N13.51 per unit representing 282.30 percent.
“The industrial customers of the IKEDC D3 that paid N25.82 per unit are now to pay N35.85 per unit.
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“The difference is now the additional 10.03 per unit, representing an increase of 357.42 percent”.
NERC said Enugu Electricity Distribution Company residential (R3) customers that were paying N27.11 per unit in 2015 are to now pay N48.12 per unit.
The customers are to pay additional N21.01 per unit, which translates to 229.03 percent.
The commission directed that “all DisCos are obligated to settle their market invoices in full as adjusted and netted off by the applicable tariff shortfall.
The PDP implored the National Assembly to come to the aide of Nigerians by deploying its statutory legislative instruments to call the Federal Government to order in the interest of the country. According to the party, the “ increase in electricity tariff as a furtherance of the fleecing of Nigerians, who are already overburdened and groaning under the weight of high costs, economic repression and heavy taxes foisted by the insensitive APC administration.
“It is lamentable that Nigerians, who are already suffering the devastating negative impact of the recent increase in the Value Added Tax (VAT) from 5 percent to 7.5 by the APC administration, are now being further suppressed with increased electricity tariff.
“Our party holds that the increase in electricity tariff, under the prevailing harsh economic conditions, is injurious to the wellbeing of Nigerians as it will further stress the productive sector and lead to an upsurge in the cost of regular and essential goods and services, including food, medicine, housing, education and other critical needs.
“This APC policy, if allowed, will worsen the suffering of Nigerians as it will put more stress on already overburdened families, cripple businesses, result in job losses and exacerbate the prevailing frightening unemployment rate under the Buhari administration.”
NAN
