Power Experts, Stakeholders Express Dismay Over More Than 300% Electricity Tariff Hike
LAGOS APRIL 4TH (NEWSRANGERS)-Some power experts and stakeholders have expressed their dissatisfaction with the over 300 percent increase in electricity tariffs approved by the Nigerian Electricity Regulatory Commission (NERC).
In separate interviews on Wednesday in Lagos, the experts and stakeholders lamented that such an increase would further burden electricity consumers across the nation.
The Federal Government, through the NERC, approved an increase of 340% in electricity tariff for customers under the Band A classification.
NERC Vice Chairman, Musiliu Oseni, who announced this during a press conference in Abuja, on Wednesday, said the new rate taking effect from Wednesday, April 3 only affects consumers who represent 15 percent of the 12 million electricity consumers in the nation.
Oseni said the new adjustment will result in those customers paying N225 per kilowatt-hour, up from the current rate of N66.
He further stated that due to the failure to meet the necessary electricity supply hours, the commission has moved some Band A customers to Band B.
Oseni, however, said that the review would not impact customers in the other bands.
“We currently have 800 feeders that are categorised as Band A, but upon reviewing those feeders’ performance, the commission has now reduced it to under 500. This means that 17% now qualify as Band A feeders. These feeders only service 15% of total electricity customers connected to the feeders.
“The commission has issued an order, which is titled April supplementary order, taking effect from today.
“The commission now reviewed further the application by the distribution companies and has decided that only the 17% feeders and less than 15% customers will be affected by any rate increase that the commission will ever approve for the distribution company.
“The order takes effect from today and in that order, the commission has approved a rate review of N225 per kilowatt hour for just under 15% of the customer population in NESI. That means that less than 15% of the customers will be affected,” he said.
Reacting to the development, Mr. Adeola Ilori, the National Coordinator of All Electricity Consumers Protection Forum, condemned the sudden tariff hike, asserting that it was implemented without due process.
Ilori emphasised that the increase should have followed the prescribed procedures outlined in NERC’s regulatory directives, as mandated by law.
He said that the magnitude of the increase, purportedly a minor review, was like a major review, necessitating thorough scrutiny and consultation with all stakeholders.
Ilori hinted at potential legal action by the group to challenge the tariff hike, citing violations of the Electricity Act 2023 and consumer protection regulations.
Mr. Chinedu Amah, founder of Spark Nigeria Ltd., raised concerns about the clarity and monitoring of Band A classification, warning of potential exploitation if not properly defined and regulated.
Daily Independent
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Posted by News Rangers
on Apr 4 2024. Filed under National.
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