According to specialists in the power industry and consumer advocacy organizations, the recent rise in energy rates by power distribution firms, as authorized by the Nigerian Electricity Regulatory Commission, demonstrates how the Federal Government and Discos are mistreating Nigerians.
Speaking on the matter on Sunday, they urged the Federal Government to direct the power distribution firms to rescind the rate increase, highlighting the fact that it occurred despite the country’s present acute economic crisis.
Additionally, they claimed that without following the Multi Year Tariff Order’s due process requirements, power distributors raised the energy tariff that consumers must pay.
Several condemnations have followed the development when the raise pricing was affirmed by a Disco last week, despite the industry regulator’s silence on the subject.
The Gistday reported on Wednesday that nationwide power users must now pay a higher tariff thanks to a covert hike by electricity distribution corporations.
Despite the fact that the majority of Discos kept this a secret, the article noted that energy customers protested the decision, calling it “a perfect heist” in light of the challenging economic conditions in Nigeria at the time.
The Nigerian Electricity Regulatory Commission issued the decision, according to the Abuja Electricity Distribution Company, which confirmed the pricing increase in a response to a Twitter user on Wednesday.
“Good day, please be informed that the increase in tariff is in compliance with NERC order,” the Disco stated.
Reacting to the development on Sunday, the Chairman, Nigeria Electricity Consumer Advocacy Network, Tomi Akingbogun, said the tariff hike should be reversed considering the economic hardship across the country.
He said, “It is right for us to call for a reversal and we are demanding that it be reversed. However, this is not the first time they’ve done it. It has been a regular thing for several years and in those instances we’ve called for reversals.
“But the next thing you will hear is that they have modified the law or have changed the Multi Year Tariff Order to accomodate what they are doing. When we keep shouting they just ignore us, but I think the government needs to really take the public seriously.
“And the public too will have to stand up for their rights, because it will get to a point when they will push everybody to the extent that we will all rise on the streets. We’ve been trying to make sure that the masses are not squeezed to a point of no return.”
Akingbogun said NECAN held a lot of meetings with the power sector operators on why it was not in the interest of the masses to raise tariffs, but the position of consumers were ignored.
“It is really frustrating. How can someone on N30,000 minimum wage survive this increase in tariff in the kind of economy that is prevalent in Nigeria now? The increase has to be reversed for the benefit of the masses,” he stated.
“It is on authority that I tell you that the Federal Government has finally withdrawn all manner of subsidies on electricity tariff for Band A category of consumers,” he stated.
He added, “The Federal Government in the selection of Band A category of electricity consumers felt that those of us on Band A should be able to afford any amount placed on tariff for electricity. This is confirmed and instructive. There is no gain for any institution to deny this reality.
“Under the reflective tariff and service-based tariff, as a condition precedent to increase in electricity tariff, the NERC has seemingly given the 11 electricity distribution companies an open cheque to carry out periodically, minor tariff adjustments.
“This is not minding the place of regular engagement and consultation, which in the past had turned out to be a smoke screen and just to fulfil all righteousness.”
According to information received from the Nigerian Power Regulatory Commission, the 11 electricity distribution firms made around N597 billion from the sale of electricity over the course of a year.
According to NERC data, Disco generated income from energy sales between January and December of 2022. A breakdown of the data, “Discos’ Energy Sales by Service Band Data for Nov 2020 to Sept 2022,” revealed that N597 billion of the N840 billion that the utility companies billed was actually collected.
The 11 Discos billed a total of 16 billion kWh of power during the reviewed year. Abuja Disco billed N109 billion for energy, but it only managed to collect N91 billion.
Benin Disco billed N89 billion, yet the electricity company was able to to collect N51bn. Eko Disco billed its customers N97bn, however, the firm was able to attain N89bn collection. Furthermore, Enugu Discos churned out a bill of N75bn, but was able to rake in N52bn in the year.
Ibadan Discos, a utility company that was dissolved during the year under review, billed out N101 billion but only managed to collect roughly N67 billion.
Although Jos Electricity Distribution Company handed out invoices totaling N45 billion, it was only able to recover roughly N20 billion.
Kaduna Discos billed N58 billion and received N21 billion; Kano Disco billed N53 billion and received N34 billion; Port Harcourt Disco billed N64 billion but recovered N41 billion; and Yola Discos, still operated by the government, sent out a bill of N18 billion but was only able to collect N10 billion, making it the lowest earner among the utility firms.
