*There is no increase of electricity tariffs – Keyamo
*Our value for money over recharge has gone done – Consumers
By BASHIR ADEFAKA
The Nigeria Labour Congress (NLC) has threatened industrial resistance following attempted increase of electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC).
Although the NERC has denied approving increase in the tariffs asking the media breaking the news to retract same, some consumers, who communicated with The DEFENDER electronically, said value for their money had gone far down to prove that there has been an increase. One of them, Ajeka Yusuf said.
When called to see that “FG denies increasing electricity tariffs, as NERC gives out contact for consumers’ complaints https://thedefenderngr.com/fg-denies-increasing-electricity-tariffs-as-nerc-gives-out-contact-for-customers-complaints/”, he simply said: “Please help analyse this section in the press release.” And he quoted from the NERC rebuttal saying the Commission admits the increase in electricity tariffs it denies: “4. In compliance with the provisions of the EPSR Act and the nation’s tariff methodology for biannual minor review, the rates for service bands A, B, C, D and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation & movement in forex.”
He said: By the way, what type of metering makes 565 units N30,000? Industrial Metering? Please confirm. I use single phase Pre-paid meter since 2007. Before June 2019, #5000 worth of energy gives me about 245 units but last month, it turns to 120 units. This should give you an idea of the Economic oppression and exploitation we suffer.”
Interjecting, another consumer said: “ I got exactly that yesterday (Monday). I am a new single phase meter consumer. I recharged N3000 yesterday and it gave me 65 units whereas N2300 gives me 100 units and, by the nature of my area, I use the 100 units for about 37 days. As for me, I will not hold NERC responsible until it fails to respond to my complaint based on email it sent out,” he said in the discussion following the announced increase.
A consumer, Alhaji Tijani Olukemi, who called The DEFENDER from Ibadan, Oyo State capital earlier on Tuesday, said, “President Muhammadu Buhari should not allow any of his advisers to give him any advice that will lead to increase in the hardship of the people. We are his supporters and will continue to be on guard against those who launch mischievous attacks on him and his government. But that support should not be made difficult for us to exercise by things like increased electricity tariffs,” he said.
Reacting to the denial of the increase by NERC, Yusuf Umar Ajeka said: “They are criminal ENABLERS. What is the justification for the incessant increases?
“Citing Devaluation of Naira and Inflation is ungodly and PROVOCATIVE because I warned them when they were doing the phoney DEREGULATION. I told PMB right here the wholesale importation of Petroleum products and free pricing by SHYLOCK importers will put pressure on the Naira. What happened since then? The Naira crashed badly to as low as #500 to a Dollar. This was the cause of the inflation that made the minimum wage of #30,000 meaningless.
“So how could NERC turn around to punish Nigerians for their own policy errors.
“Did this administration not know that devaluation of naira will affect every sector of the economy, essential goods and services and cost of living?”
CONSUMER RESPONSE: See this from AEDC. Someone recharged#30,000 worth and got half of its worth.
The Nigeria Labour 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 reported by some online media (not The DEFENDER) on Tuesday.
Meanwhile, the Minister of State for Labour and Employment, Festus Keyamo, in a television interview also 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.
The DEFENDER published Tuesday the media reports earlier, that NERC, in a directive issued on December 31, 2020, and signed by its chairman, Sanusi Garba, said the new tariffs would take effect from January 1, 2021.
NERC said some of the indices considered for the upward review include Nigeria’s inflation rate, exchange rate, US rate of inflation, available generation capacity, gas price, MDA losses and capex adjustment.
Reportedly, the reports subsequently suggested that the new tariffs were a 50 percent increase from the previous one.
But the Commission said the reports were misinforming electricity consumers.
It said that the tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidised.
The commission noted that the hike affected the rates for service bands A, B, C, D and E. It said the rates were adjusted by N2.00 to N4.00 per kWhr to reflect the partial impact of inflation and movement in foreign exchange.
NERC further said that the move was in compliance with the provisions of the EPSR Act and the nation’s tariff methodology for biannual minor review.
“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 statement read.
“The Commission hereby state unequivocally that NO approval has been granted for a 50% tariff increase in the Tariff Order for electricity distribution companies which took effect on January 1, 2021.
“On the contrary, the tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidised in line with the policy direction of the FG.
“In compliance with the provisions of the EPSR Act and the nation’s tariff methodology for biannual minor review, the rates for service bands A, B, C, D and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation & movement in forex.”
The commission, therefore, asked the media 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,” it added.
