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ActionAid Nigeria decries increase in electricity tariff for Nigerians

…laments impending poverty effect on masses

By Joyce Remi- Babayeju

ActionAid Nigeria, AAN,. has decried the alleged new astronomical increase in electricity tariff resolution by the Nigerian Electricity Regulatory Commission, NERC, directing all 11 Electricity Distribution Companies, Discos to increase their tariffs from today Wednesday, 1st September, 2021.

In a press statement issued by AAN, it posits that the increase in electricity tariff will further erode the purchasing power of Nigerian workers in formal and informal sectors and will further impoverish more Nigerians.

Speaking in Abuja, the Country Director, Ene Obi lamented that the increase in electricity tariff is not only ill timed but insensitive to the precarious plight of Nigerians whose lean disposable incomes are already decapitated.

The Non Governmental Organization, NGO, position it said is hinged on the premise that previous hike in electricity tariffs had not translated to effective and regulatory strategies to manage the impact of such hikes on macro-economic indices affecting end-users that are currently economically crippled and trapped.”

Obi who condemned the tariff move also reminded the Federal Government that more than a hundred million Nigerians are living below the poverty line.

nstead of this tariff hike, NERC should compel all the actors in Nigerian Electricity Supply Industry to ensure increased efficiency in the power sector including managing energy loses to make erratic power supply a thing of the past as a way of boosting productivity and Nigeria’s GDP, she said.

“We urge NERC to rescind this decision and ensure that the Nigerian Electricity Supply Industry improve its performance before considering a tariff increase.”

The statement said, ” If this purported decision is not reconsidered, the cost of production of basic items produced in the country will increase and this may also lead to job losses in the already ailing medium and small-scale industries in Nigeria. Investors who rely largely on power supply will obviously not be able to break even. To remain afloat, they will have to shift the burden of increased cost of production to the final consumers of their products and services in an economy already choked by inflation.”

ActionAid Nigeria therefore calls on the Nigerian Electricity Regulatory Commission, NERC, and the Federal Government, to halt the planned electricity tariff increment and uphold its values of transparency, fairness, and accountability by ensuring continuous consultation with the masses while protecting consumer rights.

September 3, 2021
Stop NERC From Increasing Electricity Tariff, Reps Tell FG

The House of Representatives has called on the Federal Government to stop the proposed increase of electricity tariff for June.

This formed part of the resolutions by the lawmakers during Thursday’s plenary in the lower chamber of the National Assembly in Abuja, the nation’s capital.

They stressed that it was important to direct the Nigerian Electricity Regulatory Commission (NERC) to rescind its decision on the proposed increment in view of the hard times Nigerians were going through.

Similarly, the lawmakers mandated the House Committees on Power, Poverty Alleviation, as well as Labour, Employment and Productivity to ensure compliance with the directive.

A member of the House, Aniekan Umanah, had raised a motion seeking that the nation’s electricity regulator should suspend the proposed increase in electricity tariff.

He wondered why there would be an increase in electricity tariff at a time when Nigerians were going through hard times and governments all over the world were providing means to cushion the effects of the COVID-19 pandemic.

According to the motion, the Electric Power Sector Act of 2005 established the NERC with a mandate to license Distribution Companies (DISCOs), determine operating codes and standards, establish customer rights and obligations, as well as set cost-reflective industry tariff.

The lawmaker stated that the Act prescribed its funding from 15 per cent of electricity charges paid by consumers to distribution companies.

He decried that NERC, working with the distribution companies, had increased the tariff five times since 2015, the latest being on January 1, 2021.

Lack Of Empathy

Despite the increases, Umanah lamented that Nigerians have not enjoyed significant improvement in power generation but grapple with daily epileptic services from the DISCOs.

He also accused the distribution companies of exploitation in the name of estimated billing arising from non-metering of over 50 per cent of consumers across the country.

The lawmaker informed his colleagues that poor services by the DISCOs have impacted negatively on the socio-economic growth of the country, saying the International Monetary Fund (IMF) Report of 2020 on Nigeria indicated that the manufacturing sector lost over $200 billion to inadequate power supply while $21 billion was said to have been spent by Nigerians on generators within the period under review.

He noted that Nigerians have gone through many hardships in recent times arising from acts of terrorism, banditry, and kidnappings.

Umanah said he was concerned that at a time governments all over the world were adopting measures to cushion the effects of the COVID–19 pandemic by providing a wide range of palliatives to losses of loved ones, jobs, businesses and general distortion in the social life, NERC was considering a further increase in electricity tariff in a country where two-thirds of its 200 million population were grappling with the effects of the pandemic.

He stressed that the current economic recession made worse by inflation has resulted in disturbing prices of foodstuffs, and increased prices of petroleum products have triggered the further increase in transport costs and rents.

The lawmaker added that the spending power of an average Nigerian has drastically reduced, warning that any further hike in electricity tariff would amount to overkill, lack of empathy, and height of insensitivity on the part of the government.

May 20, 2021
BREAKING: FG directs NERC to suspend adjusted Electricity tariff

The federal government, on Thursday directed the National Electricity Regulatory Commission (NERC) to suspend the implementation of the electricity tariff recently announced by the agency.

The directive was given b y the Minister of Power, Mamman Saleh on Thursday.Mr Saleh directed the NERC to inform all DISCOs to suspend the implementation of the duly performed minor review (which adjusted tariffs between N2/kWh and N4/kWh) until the conclusion of the Joint Ad-Hoc Committee’s work at the end of January 2021.The new adjustment in the electricity has elicited condemnations from all walks of life, especially the organised labour, who described it as “another breach of trust.”Although NERC had on Tuesday denied any increment, saying it did not approve such. It however explained further that rather than increment, what happened is a minor adjustment to reflect the current inflation and exchange rates.

January 7, 2021
Electricity Tariff: NLC Threatens ‘Industrial Resistance’

The Nigeria Labour Congress (NLC) has threatened industrial resistance following the increase in electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC).

The Congress, in a statement released late on Tuesday night and signed by the President, Ayuba Wabba, said the Federal Government should reverse the increase immediately or face an “unprecedented industrial resistance by Nigerian workers.”

They condemned the action of the Federal Government noting that the new increase will affect manufactures and producers of “Made-in-Nigeria” goods and services who will find it greatly difficult to cope.

“There is no gainsaying the fact that this tariff hike would sound the death knell for many manufacturing outfits in Nigeria as many of them would resort to either mass lay-off of workers and or direct importation of finished goods.

“In light of the heightened burden that this hike in electricity tariff imposes on Nigerian workers and people, we urge the Federal Government to quickly withdraw this uncanny New Year Gift or face an unprecedented industrial resistance by Nigerian workers,” Wabba said in the statement.

The increase in electricity tariff was announced on Wednesday following an adjustment of tariff by the NERC.

The approval was given in a Multi-Year Tariff Order (MYTO) signed by the new NERC Chairman, Sanusi Garba, and obtained by Channels Television on Tuesday.

Meanwhile, the Minister of State for Labour and Employment, Festus Keyamo, in an interview on Channels Television’s Politics Today denied the increase. He noted that what was done was to adjust certain bands and to ensure that certain persons who are supposed to be on some bands are not wrongly put on some other bands.

January 6, 2021
NERC denies 50% increase in electricity tariff

The management of the Nigerian Electricity Regulatory Commission, NERC, has denied reports that there has been a 50 per cent increase in electricity tariff.

NERC’s Head of Public Affairs, Micheal Faloseyi, denied the report in a statement released in Abuja today Tuesday, January 5.

According to Faloseyi, rates for service bands have been adjusted by NGN2.00 to NGN4.00 per kWhr.

The statement reads

“The attention of the Commission has been drawn to publications in the print and electronic media misinforming electricity consumers that the Commission has approved a 50% increase in electricity tariffs.

The commission hereby state unequivocally that no approval has been granted for 50 per cent tariff increase in the tariff order for Electricity Distribution Companies, DISCOs, which took effect from January 1, 2021.

On the contrary, the tariff for customers on Service Bands D and E (customers being served less than an average of 12 hours of supply per day for a period of one month) remains frozen and subsidised in line with the policy direction of the Federal Government.

In compliance with the Electric Power Sector Reforms Acts (EPRSA) and the nation’s tariff methodology for biannual review, the rates for Service Bands A, B, C, D and E have been adjusted by N2.00 to N4.00 per kWhr to reflect the partial impact of inflation and movement in foreign exchange rates.

In the light of strong public interest on this matter, the media is hereby requested to retract their earlier publications misinforming electricity consumers nationwide about a purported 50% increase in electricity tariffs.

The Commission remains committed to protecting electricity consumers from failure to deliver on committed service levels under the service-based tariff regime.

Any customer that has been impacted by any rate increases beyond the above provision of the tariff Order should report to the Commission at customer.complaints@nerc.gov.ng”

January 5, 2021
BREAKING: FG increases electricity tariff again

The Federal Government has again increased the electricity tariff payable by power consumers across the country.

Approval for the hike in tariff was given by the Nigerian Electricity Regulatory Commission, as the increase which varies, based on different consumer classes, took effect from January 1, 2020.

The NERC announced the tariff hike in its December 2020 minor review of the Multi Year Tariff Order and Minimum Remittance Order obtained by our correspondent in Abuja on Tuesday.

The tariff increase is taking effect just two months after the government through NERC implemented a hike in November 2020, which saw widespread opposition.

The MYTO order containing the latest tariff hike, Order NERC/225/2020, was signed by the new Chairman of NERC, Sanusi Garba, and it supersedes the previous Order NERC/2028/2020.

Providing reasons for the latest tariff hike, the commission said it considered the 14.9 per cent inflation rate rise in November 2020 and foreign exchange of N379.4/$1 as of December 29, 2020.

Others were available generation capacity, United States inflation rate of 1.22 per cent and the Capital Expenditure of the power firms before the tariff was raised.

Findings showed that the revised Service Based Tariff saw increase in the rates payable by the various classes of electricity users unlike the one of November 2020, that exempted low electricity consumers.

The commission also stated that the new tariff would be effective till June 2021 while a Cost Reflective Tariff would be activated from June to December 2021.

The commission had stated last month that it was carrying out a review for another tariff, hence the latest order announcing an increase in the rates payable by consumers.

In September last year the commission raised electricity tariff but this was faced with stiff opposition by the organised labour, as the unions threatened to embark on a nationwide strike.

After series of negotiations that tariff was reduced based on consumer classes and the hours of power supply received by an electricity user.

On November 1, 2020 power distribution companies commenced the implementation of the revised electricity tariff that was jointly agreed upon by organised labour and the Federal Government.

The Nigeria Labour Congress had told our correspondent that the Federal Government would not revert to the September 1, 2020 service reflective tariff that led to widespread outcry across the country.

Deputy President, NLC, who doubles as General Secretary, National Union of Electricity Employees, Joe Ajaero, stated that the September 1, 2020 hike in tariff had been reviewed downwards in most categories.

But two months after implementing the revised tariff that saw various levels of increase in rates, the government has again increased the tariff.

January 5, 2021
FG extends suspension of new electricity tariff by one week

The Federal Government has extended the suspension of the new electricity tariff by one week.

Recall that the new tariff was earlier suspended for two weeks which ended at midnight on October 11, following an agreement the FG reached with organized labour.

Prof. James Momoh, Chairman of Nigeria Electricity Regulatory Commission (NERC) who made announcement of the extension at a meeting which was held at the Presidential Villa in Abuja last night, said the decision was reached to enable the ad hoc Technical Committee on Electricity Tariff review and work out modalities for the implementation of the agreement reached on the electricity tariffs structure.

As part of palliatives in the power sector, the federal government said it had approved six million meters to be distributed across the country.

The Minister of State for Power, Prince Goddy Jedy-Agba said one million meters were already available and that distributions would start within the week. He disclosed that the distribution would be completed before December.

The resolution read by the Chairman of the Technical Committee and Minister of State for Labour and Employment, Mr. Festus Keyamo, said;

“The committee adopted a two-phase approach to proffer solutions that would help resolve issues affecting the sector in the medium term, whilst providing relief to customers immediately.
“The immediate relief would be provided to citizens for a 2 to 3-month period (not later than December 31, 2020), being the timeline for the conclusion of an extended scope of work for the Technical Committee”.

The resolution which made provision for salary protection for electricity workers, also revealed that the federal government accepted to procure six million meters to be distributed by the Discos to electricity consumers without metres.

There will also be a reduction in tariffs by 10 percent for band A, 10.5 percent for band B and 31 per cent for band C.

October 12, 2020
Electricity tariff: EEDC complies, reverts to old rate

In line with the order issued by the Nigerian Electricity Regulatory Commission (NERC), the Enugu Electricity Distribution PLC (EEDC) has confirmed its reversal to the old electricity tariff.

Reports from our correspondents had it that the EEDC had suspended the Multi Year Tariff Order (MYTO) 2020, for a period of 14 days with effect from September 28, 2020 to October 11, 2020.

This was a fallout of the agreement reached between the organized labour and the Federal Government, leading to the suspension of the nationwide strike over the increment in the prices of petrol and electricity.

The Order, which was signed by NERC Chairman, James Momoh and Commissioner, Legal, Licensing & Compliance, Dafe Akpeneye, is in compliance with a joint communique issued by the Federal Government of Nigeria (FGN) and the Labour Unions, where it was agreed that the recently reviewed tariff be suspended by the Commission for 14 days to further consult and finalize negotiations between the parties.

According to a release issued by the Head of Corporate Communications, EEDC, Mr. Emeka Ezeh on Thursday, he said the EEDC has already complied with the directive.

“With this development, prepaid customers of EEDC who experienced immediate impact of the reviewed tariff during their recharge between 28th to 30th September, 2020, the difference between the reviewed tariff and old tariff for the 3 days will be credited to the customers wallets, which they can use to recharge their meters in future; while for the remaining 11 days (1st to 11th October, 2020), all vending activities will be at the old tariff.

“In the same vein, for postpaid customers, the difference between the reviewed tariff and the old tariff for the 14 days period will be computed and credit adjustment effected for the affected customers (that is crediting their respective accounts with the difference).

“It will, however, be noted that some category of customers were not affected by the reviewed tariff, as their tariff was frozen and they were still paying their bills using the old tariff. These are customers that fall under Bands D and E. They will continue paying/vending with the old rate.

“The Order issued by NERC further directed that “all tariffs for end-use customers and market obligations of the distribution companies during the 14-day suspension shall be computed on the basis of rates applicable as at August 31, 2020.”

“EEDC assures her esteemed customers of its unrelenting commitment towards consistently improving its infrastructure to deliver efficient, reliable and quality services,” Ezeh said.

October 2, 2020
Electricity tariff: Police harasses protesting youths in Abuja

Some aggrieved Nigerian youths took to the streets of Abuja to protest the hike in electricity tariff in the country.

The youths who staged a peaceful protest were accosted by some of the Nigerian Police Force, and in the process of altercation a man fell victim of Police anger.

In the video the man was seen being slapped kicked and manhandled by some gang of uniformed policemen. This video has generated a lot of backlash on the NPF as well as the current administration.

September 15, 2020
Group gives FG five days ultimatum to reverse fuel price, electricity tariff

The Coalition of Civil Societies, Osun State and National Associational of Nigerian Students (NANS), have given the Federal Government of Nigeria five days ultimatum to reverse the petrol pump price and electricity tariff.

The protesters in Osogbo, the state capital of Osun on Friday, demanded the government to reverse the pump price to its original N130 and also reverse other anti-human taxes and tariffs increase.

Recall that the Pipelines and Product Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation, NNPC, had earlier announced an increment in the pump price of petrol to N151.56 per litre.

The chairman of Osun Civil Societies Coalition, OCSC, Comrade Waheed Lawal, who led the protest, lamented that the Federal Government under President Muhammadu Buhari has failed Nigerians over unfulfilled promises he made during the electioneering process.

According to him, “Nigeria belongs to all and the masses voted for President Muhammadu Buhari because of the promises he made during his campaign, but Buhari has failed Nigerians.”

They, however, give the President Buhari five days ultimatum to reverse electricity tariff and petrol pump price or see a riot of the masses.

September 5, 2020