By Our Reporter
Electricity Consumers have cried out against what they describe as exploitation by the electricity distribution companies, DisCos. They allege that the DisCos are indiscriminately implementing the recent tariff hike on Band A consumers across all Bands. The Consumers have also accused the DisCos of effecting the increment earlier than expected.
Following the depreciation of the naira against the United States dollar, and inflation, among other constraints, the Nigerian Electricity Regulatory Commission, NERC, again raised the tariff payable by Band A customers, despite concerns raised by the electricity consumers rejecting the old tariff increment.
On Wednesday, some distribution companies including Ikeja Electricity Distribution Company, Ibadan Electricity Distribution Company, Eko, and Kaduna Electricity Distribution Companies, among others, announced an upward review of their tariffs for Band A from N206.80 per kilowatt-hour to N209.50/kWh.
The Nigerian Electricity regulators had approved on May 23, 2024, a 300 percent hike in tariff to N225 ($0.15) per kilowatt-hour.
But, electricity consumers at Ikeja have indicted Ikeja Electricity Distribution Company, IKEDC, of increasing their tariff across all bands, way beyond the stipulated amount approved by the regulators, in addition to implementing the new tariff hike two months earlier before the due date of July 1, 2024.
Mrs. Catherine Ifa, a housewife, who resides around Ikeja environs told FP, that when she got her June bill, she noticed that it had increased substantially. And to make matters worse, she was told she owed an outstanding bill for May, 2024, as the tariff hike was implemented in the month of May 2024.
“I was billed N7, 343.49 for April, 2024. In May 2024, I got no bill from them despite making several calls to them. They eventually came to my house demanding evidence of payment. At which point I told them that I was yet to receive any bill from them. They then told me that I was to pay N7,550, for May, 2024, and I proceeded immediately to pay the exact amount I was told online,” Ifa said, adding that she was therefore at a loss when she received N8,734.54 for June 2024, bill, adding that she had an outstanding for the month of May 2024. “In just less than two months, they have increased my bill by about N1,500,” Ifa quipped.
“When I called the marketer to find out what was going on, she didn’t respond to my call. I sent a text message which was not replied. So, I decided to go to their office two days later to enquire from her why my bill had to be increased. She told me that there had been a hike in electricity tariff, effective May, 2024,” Ifa said.
“I was shocked. And to make matters worse, I happen to be on Band C, and so I can’t understand how and why the tariff hike should affect me,” she said.
NERC had put out information to the general public announcing that the minimal increment will be only for Band A consumers while other Bands, B, C, D, etc. would remain unaffected; and that the increment takes effect from July 1, 2024, even though the tariff hike was approved in May, 2024.
The vice chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, reportedly said that the rate increase would only affect 15 percent of the 12 million electricity customers in the country. He also said it would be for urban consumers, also known as Band A consumers.
FP reached out to the media officer of Ikeja electricity distribution company, Mrs. Fadeke, through WhatsApp text message, for comments on the complaints of their consumers, but she referred this reporter to visit the website of the Nigerian Electric Regulatory Commission, NERC, to know all about tariff review.
Recall that when the idea of hike in electricity tariff was first mooted citizens and labour unions in Nigeria opposed it. Eventually when the increment was effected, the labour union and some experts insisted that the increment was unacceptable in the face of the country’s current hardship and high inflation. At the time, Nigeria’s inflation rate was put at 22.04% in March 2023. In February 2024 headline inflation rate stood at over 34%.
Consumers warned of the devastating effect of the tariff hike, stressing that it would drive manufacturers out of business, worsen inflation, and stifle small and medium enterprises. They claim that there was no place in Nigeria where people enjoyed up to 20 hours of power supply daily.
Nigeria has the lowest access to electricity globally, with about 92 million people out of the country’s 200 million population lacking access to power.