NLC, MAN, others kick against electricity tariff hike in Nigeria

Electricity consumers, Labour unions and key stakeholders in the economy on Tuesday kicked against increase in electricity tariff implemented by power distribution companies across the country on Tuesday.

Those that spoke to The Punch on the tariff adjustments included the Nigeria Labour Congress which vowed to resist the increase, the Manufacturers Association of Nigeria which said the hike could precipitate recession in the third quarter of the year, the and the Lagos Chamber of Commerce and Industry.

The NLC said the hike would further impoverish Nigerians.

The congress argued that the implementation of the new tariff on Tuesday was despite the resolution of the Senate and the direct orders of President Muhammadu Buhari that the decision by the electricity distribution companies on tariff should be suspended until further notice.

NERC and the Discos had said that the new service reflective tariff took effect from September 1 (Tuesday).

The Discos said on Tuesday that electricity customers, except those receiving less than 12 hours of supply, would have to pay more.

With the review, the tariffs being charged residential consumers receiving a minimum of 12 hours of power supply has increased by over 70 per cent.

The NLC President, Ayuba Wabba, said the move would be resisted and cautioned the DISCOs against going ahead with the implementation of the new electricity tariff.

He stated this in a statement on Tuesday titled ‘Increase in electricity tariff by Abuja DISCO – A taunting of the will of the Nigerian people gone too far’.

According to NERC and the Discos, the new tariff is based on the hours of electricity supply available to the customers.

Customers are categorised into maximum demand and non-maximum demand customers, as against the previous categories of residential, commercial and industrial customers, with different bands (A to E) depending on the level of supply.

Maximum demand customers are those who consumer high levels of electricity, within the threshold of 45kVA consumption and above, according to NERC.

For Ikeja Electric, a residential customer on single phase receiving a minimum of 12 hours of supply will now pay N42.73 per kilowatt-hour, up from N21.30 per kWh.

For Eko Electricity Distribution Company, a residential customer on single-phase receiving a minimum of 12 hours of supply will now pay N43.01 per kWh, up from N24 per kWh.

For Abuja Electricity Distribution Company, a residential customer on single-phase receiving between 12 to 16 hours of supply will now be charged N45.69 per kWh, up from N24.30 per kWh.

Kaduna Electric announced on Twitter on Monday night that residential customer on single-phase receiving between 12 and 16 hours will be charged N50.10 per kWh, compared to the old tariff of N26.37 per kWh.

A residential customer receiving a minimum of 12 hours of supply from Ibadan Electricity Distribution Company will now pay N53.97 per kWh, up from N24.97 per kWh.

The Director-General, Lagos Chamber of Commerce and Industry, Mr Muda Yusuf, said it was important to inspire the confidence of electricity consumers through a robust metering programme and guarantee of value for money.

According to him, for investments in the power sector, cost-reflective tariff is inevitable.

“The alternative is to classify electricity provision as social good which only the government could provide or subsidise,” Yusuf added.

 

 

– Punch

About Delia Innoma

Delia Innoma is a prolific writer, promoter, artist manager with full professional proficiency in English, German and Igbo languages. She studied accounting and computer programming at the Institute of Management and Technology Enugu and Germany respectively. Delia is also a devoted mother of two and she founded the Diamond Celebrities Magazine. Her sense of responsibility and commitment to the Christian faith are essential forces driving her daily activities.

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