The rate that power users around the nation are required to pay has been surreptitiously hiked by electricity distribution corporations.
Despite the fact that the majority of Discos kept this a secret, power customers have protested the decision, calling it “a perfect heist” in light of the challenging economic conditions that exist in Nigeria right now.
Mr. Oye Sola, a resident of a prestigious estate in Lagos, expressed regret about the price increase.
He said, “Electricity tariff is now N72.2 per unit. Another price hike from N66; I suspect they are going to N100. A higher price for poorer services.
Another customer of Ikeja Disco identified as Ola Busari said, “They are just milking us. This is a perfect robbery. Discos need to be checked.
Another Lagos resident named Olojede said, “They increased prices without informing us. There was no official communication to us as our estate representatives.” However, the Nigerian Electricity Regulatory Commission, in its Multi-Year Tariff Order, provides a 15-year tariff path for the Nigeria Electricity Supply Industry with limited minor reviews each year.
It indicates that substantial evaluations every five years, during which all of the inputs were evaluated with the stakeholders, are conducted in light of changes in a small number of criteria, such as inflation, interest rates, currency rates, and generating capacity.
The latest pricing increase, which a power distribution business attributed to NERC on Wednesday, was not, however, announced by the regulator.
Oyibo Ediri, a Twitter user, said that the Abuja Electricity Distribution Company discreetly increased the cost in December by N12.65 for non-customers with highest usage.
“AEDC has quietly increased the cost of electricity. Cost increased from N57.55 in December to N68.2 for tariff band A non-MD. No official statement from @aedcelectricity or @NERCNG on the increase. These people won’t stop to fleece us,” the Twitter user stated.
Replying to the tweet, the AEDC, via its official Twitter handle, @aedcelectricity, explained that the tariff hike was based on the order of NERC.
“Good day, please be informed that the increase in Tariff is in compliance with NERC order,” the Disco stated.
Also, reacting to the response of AEDC, Ediri asked the power firm to provide the current rates approved by the NERC.
“Kindly make the current rates available as ordered by @NERCNG. Thank you,” the Twitter user stated.
However, the Disco made no additional remarks and did not respond to the power users’ inquiries. As of Wednesday, the electricity regulator was unable to provide an answer. Calls and texts requesting explanation on the development received no immediate response from its representatives.
But according to NERC’s website, one of the commission’s main responsibilities under Section 32(d) of the Electric Power Sector Reform Act of 2005 is to make sure that the prices that licensees charge are reasonable for customers and sufficient to allow the licensees to finance their operations and make a profit that is reasonable for efficient operations.
“In pursuant to the authority given under Section 76 of the EPSR Act 2005, the commission established a methodology for determining electricity tariff in the Nigerian Electricity Supply Industry and subsequently issued a tariff order called the Multi-Year Tariff Order that sets out tariffs for the generation, transmission and distribution of electricity in Nigeria,” it stated.
It added, “The purpose of the MYTO is to set cost-reflective tariffs which will allow the power sector to be properly funded and functional.
“It provides a 15-year tariff path for the NESI with limited minor reviews each year in the light of changes in a limited number of parameters (such as inflation, interest rates, exchange rates and generation capacity) and major reviews every five years, when all of the inputs are reviewed with the stakeholders.”
The Tariff Band A Non-MD, which went from N57.55 per unit in December to N68.2 per unit, is where the tariff hike was first seen. This results in a tariff rise of nearly 19%.
Uket Obonga, the National Secretary of the Nigeria Electricity Consumer Advocacy Network, reacted to the news by confirming the pricing hike but stressing that it was in accordance with the MYTO.
He said, “They’re (Discos) are transiting to the new tariff regime that takes effect from January. On January 1 this year, around 4pm, I had over 300 units in my meter, but to confirm whether there is an increment, I had to buy some units online.
“I bought units of N2,000, which is supposed to be about 26 or 27 units, but what I saw there was about 21 units, which is confirmation that there is a tariff increase according to the current MYTO.
“They moved into a new tariff regime on January 1. But there have been other arbitrary increments outside the MYTO regime. However, the one that took effect now is based on the MYTO, as captured in the MYTO 2020 order.”
Also, NERC Chairman, Sanusi Garba, had during a press briefing said, “We will adjust the rate every six months to take care of the foreign exchange component of costs, and also inflation. This is absolutely a very straightforward thing,” Although the chairman said the rate might not necessarily be an upward review, the naira continued to depreciate over time.
