NIGERIA ELECTRICITY TARIFF PLANS: WHY THE IMMEDIATE INCREASE

The Nigerian Electricity Regulatory Commission (NERC) on April 3, 2024 raised electricity tariff for customers enjoying 20 hours power supply daily. This has raised a serious concern across the nation as the new cost will see customers start paying N225 kilowatt per hour from the current N66.

Nigerian has criticized the decision of the tariff hike which took immediate effect to add to the current hardship been faced in the land at the moment. Affected Customers in this category are said to be under the Band A classification.

Two day after the increase, Vice Chairman of NERC, Musiliu Oseni said that Band A electricity consumers regularly get 20-plus hours supply of electricity a day and should pay much more than other consumers who get much less. He noted that the information is a big lie as no sector of society regularly gets a minimum of 20 hours of electricity a day.

He further noted that, you cannot build a new policy on lies and such a huge price increase in the middle of the most severe cost of living crisis in Nigerian history; it cannot stand. While it is reported that the new tariff is also aimed at eliminating the annual electricity subsidies of NGN1.14 trillion.

Same day, that April 5, NERC fined Abuja Electricity Distribution Plc, AEDC, N200 million over tariff violation. According to their statement on Friday via NERC’s X handle, NERC said AEDC was penalized for failing to adhere to its tariff guidelines, creating a stir among consumers and industry stakeholders alike.

The statement reads, “NERC Fines AEDC ₦200 Million for Violation of the New Tariff Order, Directs Customer Refunds The Nigerian Electricity Regulatory Commission (“Commission”) has taken enforcement action against the Abuja Electricity Distribution Plc (“AEDC”) for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC (the “Order”). AEDC has been fined ₦200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing.

Meanwhile, NERC has directed power distribution companies to refund all overbilled Band B customers by April 11. This directive to the electricity distribution companies on implementation of the April 2024 supplementary Multi-Year Tariff Order was released on Saturday.

These directive came amid complaints from customers not on Band A, who are now being made to pay N225/KWh for electricity.

SO WHY THE IMMEDITATE TARIFF INCREASE??

NERC Commissioner for Planning Research and Strategy, Yusuf Ali, was on Channels Television’s Politics Today programme during the week and he provided perspectives to what informed the decision of the regulatory body.

During the interview, he was asked question regarding to how to monitor compliance of the disCos, How do customers gets to know if they are band A customer

SOURCE: ChannelTV