DESPITE the concerns raised by the Nigerian Labour Congress (NLC) over the upward review of tariffs, the electricity distribution companies (DisCos) announced the upward review of electricity tariffs for Band A customers on Wednesday, July 3.
The tariff was increased from N206.80/Kilowatts(kWh) to N209.5/kWh.
The upward review takes effect from July 1, as seen by official statements issued by some of the distribution companies.
Taking to its X account, the Port Harcourt Electricity Distribution Plc (PHED) said:
“Dear esteemed customers, Please be informed that there is an upward tariff review for our Band A feeders from N206.80/kWh to N209.5/kwh effective 1st July 2024. The guaranteed availability of a minimum of 20 hrs per day still stands.
“The tariff for Bands B, C, D, and E remains unchanged.”
Similarly, Kaduna Electricity Distribution Company (Kaduna Electric) said:
“Dear esteemed customers, the management of Kaduna Electric informs the public of an upward review in the tariff of Band A feeders from N206.80/kWh to N209.5/kWh.
“The review is effective from 1st July 2024 and affects prepaid and postpaid customers. Kaduna Electric assures customers on its Band A feeders of the continued availability of 20-24 hrs daily as stipulated in the service-based tariff regime”.
“Effective immediately, the tariff will be adjusted from N206.80/kWh to N209.50/kWh. This review has been duly approved by the Nigerian Electricity Regulatory Commission (NERC) as captured in the mIn April, the Nigerian Electricity Regulatory Commission (NERC) ordered the immediate upward review of electricity tariffs. multi-year tariff supplementary order,” a statement signed by Acting Managing Director, IBEDC, Francis Agoha, read.
Similar posts were made by Ikeja Electricity (IE) and Abuja DisCo (AEDC).
In April, the ICIR reported the directive by the Nigerian Electricity Regulatory Commission (NERC) on the immediate upward review of electricity tariff for customers under Band A, a directive affirmed by the Minister of Power, Adebayo Adelabu who had earlier raised concern over the Nigerian government’s unsustainable power sector subsidy.
Most industrial areas, highbrow estates, and residences are classified under Band A.
Findings have shown that gas pricing, foreign exchange rate variables, and inflationary pressure are key factors considered by electricity sector stakeholders before upward tariff review.
Already, the decision has attracted criticism from industry stakeholders and Nigerians who said the increment would not solve the power sector crisis if NERC does not give targets to the DisCos and follow the signed agreement with a performance improvement plan.
Secretary of the Network of Electricity Consumers, Uket Ubong, said the tariff hike for band A customers to ₦250/unit wouldn’t solve liquidity problems in the power sector.
“Tariff increase will never solve the liquidity crises. I have said it severally. It’s certainly not the silver bullet. Increasing the tariff to ₦1000/kWh will not solve the problem if the power distribution companies remain rent seekers/ collectors. What happened to the Performance Improvement Plan (PIP) signed by the power distribution companies with the NERC under the service-based reflective tariff? he asked.
Commenting further on the development, the President of the Electricity Consumer Protection Advocacy Centre (ECPAC), Princewill Okorie, said the DisCos did not consult with stakeholders over the tariff increment.
”Have they finished implementing the former Multi-Year Tariff Order (MYTO)? We are talking about tariffs, what about some unlawful collections in billing? Where is the meter acquisition fund? Is it not the same consumers that are buying the meters? Have they refunded those who paid for meters under the Meter Acquisition Fund?
“Now, who is asking questions about their capital expenditure (capex) and operating expenditure (opex)? How much opex has the Nigerian Electricity Regulatory Commission (NERC) been approving for them every year?” he queried.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.