PDP, HURIWA slam increase
The Nigerian Electricity Regulatory Commission has approved increase in electricity tariff by the 11 Electricity Distribution Companies (DisCos) in the country.
The directive of the new tariff regime for different DisCos and category of customers was signed by the NERC chairman, Prof. James Momoh, and secretary, Mr. Dafe Akpedeye.
The commission said the order superseded the earlier one issued on the subject matter, and “the new tariff regime takes effect from January 1, 2020.
NERC noted that the order had taken into consideration, other actual changes in relevant macroeconomic variables and available generation capacity as at October 31, 2019.
The commission said the order was in line with updating the multi year tariff order operating -2015 Tariff Order for 2019 in line with the provisions of the amended MYTO Methodology.
“Projections are made for the variables for year 2020 and beyond based on the best available information.
“The commission, however, based adjustments in the tariff, on the relevant data obtained from the Central Bank of Nigeria and National Bureau of Statistics (NBS) such as average monthly inflation rate of 11.3 per cent, exchange rate of N309.97.”
According to the publication, for the Abuja Electricity Distribution Company residential customers R3 that were paying N27.20 per unit are to now pay N47.09.
NERC said the customers are now to pay N19.89 more per unit representing 236.75 per cent increase.
“The commercial customers C3 that paid N27.20 per unit in 2015, when the tariff was last adjusted and implemented are now to pay N47.09 in 2020,” it added.
The commission said for the Ikeja Electricity Distribution Company’s customers, the R3 category that were formerly paying N26.50 per unit is to now pay N36.92 per unit.
The customers are, therefore, to pay additional N10.02 per unit, representing 368.49 per cent increase.
“The commercial customers C3 that paid N24.63 per unit in 2015 are to now pay N38.14 per unit.
“The customers are to pay additional N13.51 per unit representing 282.30 per cent.
“The industrial customers of the IKEDC D3 that paid N25.82 per unit are now to pay N35.85 per unit.
“The difference is now the additional 10.03 per unit, representing an increase of 357.42 percent”.
NERC said Enugu Electricity Distribution Company residential (R3) customers that were paying N27.11 per unit in 2015 are to now pay N48.12 per unit.
The customers are to pay additional N21.01 per unit, which translates to 229.03 percent.
Residential consumers are those categorised as those using singe phase and three-phase meters and electricity consumption of about 50 kWh in premises with flats exclusively for residential purposes.
The affected DISCos include Abuja Electricity Distribution Company, Benin Electricity Distribution Company, Enugu Electricity Distribution Company, Eko Electricity Distribution Company, Ibadan Electricity Distribution Company, Ikeja Electricity Distribution Company, Jos Electricity Distribution Company, Kaduna Electricity Distribution Company, Kano Electricity Distribution Company, Port Harcourt Electricity Distribution Company and Yola Electricity Distribution Company.
The order, NERC said, supersedes “other orders issued on the subject matter, and shall take effect from January 1, 2020.”
Commercial consumers are those who use premises for any purpose other than exclusively as residence or as a factory for manufacturing goods.
The industrial consumers are customers who use their premises for manufacturing goods including welding and iron monger.
The special customers include those involved in agriculture (excluding agro-allied enterprises involved in processing), water boards, religious houses, government and teaching hospitals, government research institutes and educational establishments.
The commission directed that “all DisCos are obligated to settle their market invoices in full as adjusted and netted off by the applicable tariff shortfall.
However, following the publication of the order in the media, NERC clarified that although January 1, 2020 was given as the effective date for the new order, the government will continue to subsidise electricity consumption cost till April 1 this year.
“The federal government’s updated Power Sector Recovery Programme (PSRP) does not envisage an immediate increase in end-user tariffs until April 1, 2020 and a transition to full cost reflectivity by end of 2021,” the clarification highlighted.
“In the interim, the federal government has committed to fund the revenue gap arising from the difference between cost reflective tariffs determined by the Commission and the actual end-user tariffs payable by customers in line with stipulated criteria,” the statement added.
Meanwhile, the Peoples emocratic Party (PDP) has reacted to the tariff hike describing it as “draconian and completely against the interest and wellbeing of Nigerians.”
The party, in a statement by its spokesman, Mr. Kola Ologbondiyan, charged the federal government to immediately rescind what it called “the obnoxious and provocative policy” and consult further with Nigerians before any such tariff hike,
The party further described the alleged increase in electricity tariff as an attempt to worsen “the fleecing of Nigerians, who are already overburdened and groaning under the weight of high costs, economic repression and heavy taxes foisted by the insensitive All progressives Congress (APC) administration.”
It urged the national assembly to rescue Nigerians from such a draconian policy by deploying its statutory legislative instruments to call the federal government to order in the interest of the nation.
“It is lamentable that Nigerians, who are already suffering the devastating negative impact of the recent increase in the Value Added Tax (VAT) from five per cent to 7.5 by the APC administration, are now being further suppressed with increased electricity tariff.
“Our party holds that the increase in electricity tariff, under the prevailing harsh economic conditions, is injurious to the wellbeing of Nigerians as it will further stress the productive sector and lead to an upsurge in the cost of regular and essential goods and services, including food, medicine, housing, education and other critical needs,” said the party.
It stated that “the APC policy, if allowed, will worsen the suffering of Nigerians as it will put more stress on already overburdened families, cripple businesses, result in job losses and exacerbate the prevailing frightening unemployment rate under the Buhari administration.”
Similarly, the national coordinator of Human Rights Writers Association of Nigeria (HURIWA), Mr. Emmanuel Onwubiko and the national media affairs director, Miss Zainab Yusuf, said the focus of the federal government in the beginning phase of the year should not be to impose grave hardship on the populace just coming out of the seasonal festivities of Christmas and New Year but on how quality education could be delivered to millions of the children of Nigerian suffering families that would be returning to schools in the next few days.
“The government should be focused in this New Year on how to improve health care and on how to curb the internal corruption that has destroyed the so-called schools feeding programme instead of President Muhammadu Buhari working day and night to unleash devastating economic strangulation through unsustainable reviewed electricity power tariffs on millions of Nigerians most of whom are unemployed, hungry, sick and poor.
“The Buhari-led administration should be focused on restoring security of lives and property which is the primary duty of government and for which it has failed to discharge instead of rushing to introduce the wicked policy of electricity power hike in January of a fresh decade,” HURIWA stated.
