Electricity consumers demand a new tariff inversion

The recent increase in electricity tariffs by electricity distribution companies, approved by the Nigerian Electricity Regulatory Commission, shows that the federal government and the discos are holding Nigerians for acquired, said power industry experts and consumer groups.

Speaking out on the issue on Sunday, they called on the federal government to order electric distribution companies to roll back the rate hike, pointing out that it comes amid the severe economic crisis that Nigeria is currently going through.

They also said electricity distributors increased the electricity rate payable by consumers without following due process contained in the multi-year rate order.

Since the rate hike was confirmed by a Disco last week, several condemnations have followed the evolution, despite the silence of the sector regulator on the matter.

The PUNCH reported Wednesday that utility companies have quietly raised the rate payable by electricity consumers across the country.

The report says that although most Discos did not make it public, power users opposed the move, describing it as "a perfect robbery" amid harsh economic realities of Nigeria today.

The Abuja Electricity Utility, which confirmed the tariff hike while responding to a Twitter user on Wednesday, explained that it was based on the order of the Nigerian Electricity Regulatory Commission.

"Hello, please note that the rate increase is in accordance with the NERC order," Disco said.

Reacting to developments on Sunday, Nigeria Electricity Consumer Advocacy Network Chairman Tomi Akingbogun said the tariff hike should be reversed given the economic difficulties across the country.

He said, "It is right for us to call for a reversal and we demand that it be reversed." However, this is not the first time they have done so. This has been a common thing for several years and in these cases we have requested reversals.

"But the next thing you'll hear is they changed the law or changed the multi-year rate order to accommodate what they're doing. When we keep on yelling, they're ignoring us, but I think the government really needs to take the public seriously.

“And the public will also have to stand up for their rights, because they will come to a point where they will push everyone to the point that we will all stand up in the street. We have tried to ensure that the masses are not rushed to a point of no return."

Akingbogun said that NECAN had held many meetings with operators in the electricity sector to explain why it was not in the interests of the masses to increase tariffs, but the position of consumers was ignored.

"It's really frustrating. How can someone on the minimum wage of 30,000 naira survive this increase in tariffs in the type of economy that is currently prevalent in Nigeria? The increase must be reversed for the benefit of the masses,” he said.

For his part, a legal consultant and energy law adviser, Professor Yemi Oke, explained that increases in electricity tariffs were supposed to follow certain established procedures, but stressed that had been overlooked in the implementation of the recent trek.

He said, "Each increase in the electricity tariff must follow a multi-year tariff order. The year 2020 was the last order which speculated on a semi-annual review to determine the increase in tariffs.

“The MYTO- must be reviewed and specifically allow tariff increases after following established rules, including broad consultations. All this has not been done.

"Even in my inaugural lesson, I grasped this same anomaly in previous tariff increases. This new one shows that they are determined to continue taking Nigerians for granted."

Furthermore, Nigeria Consumer Protection Network Chairman Kunle Olubiyo said the federal government has finally withdrawn the subsidy on electricity tariffs.

He said NERC had given power distributors open control to make minor rate revisions under reflex rates and service-based rates.

"It is by authority that I tell you that the federal government finally withdrew all kinds of subsidies on the electricity tariff for the class of consumers in band A", he said. -he declared.

He added, "The Federal Government, in selecting the Band A electricity consumer category, felt that those of us on Band A should be able to pay any amount placed on the electricity tariff. This is confirmed and instructive. No institution has an interest in denying this reality.

"In the context of the reflexive tariff and the service-based tariff, as a precondition for the increase in electricity consumption...