Electricity customers insist on reversal of tariff increase, scorn reduction
Nigerians across various sectors have voiced their dissatisfaction with the Nigerian Electricity Regulatory Commission’s (NERC) decision to reduce the tariff payable by Band A customers. Despite the reduction from N225/kWh to N206.8/kWh, stakeholders including the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, electricity consumers, and civil society organizations are calling for a complete reversal to the subsidy era tariff.
The initial tariff hike, implemented just 33 days prior, saw a staggering 240 per cent increase in electricity tariffs for Band A customers. This move, which withdrew subsidies completely from Band A consumers, was met with widespread criticism and opposition from various quarters.
While the Federal Government cited potential savings of N1.5tn as justification for the tariff adjustment, concerns have been raised about the impact on consumers, particularly the financially vulnerable. The House of Representatives, organized labor, and the Nigerian Bar Association have all condemned the hike, with calls for its suspension and reversal.
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Defending the increase, Minister of Power Adebayo Adelabu warned of a nationwide blackout within three months if the tariff hike was not implemented. Despite opposition, government spokesperson Florence Eke asserted that the tariff adjustment would remain in place.
However, in a surprising turn of events, the NERC announced an eight per cent reduction in tariffs for Band A customers, attributing the decision to changes in macroeconomic indices, particularly the appreciation of the naira against the dollar. Following the NERC’s directive, several electricity distribution companies (Discos), including Abuja, Ikeja, and Ibadan, promptly announced the implementation of the tariff reduction.
While the reduction may provide some relief to consumers, stakeholders remain skeptical, emphasizing the need for broader reforms in the energy sector. Critics argue that mere tariff reductions do not address fundamental issues such as inadequate fuel supply and the overall inefficiency of the electricity supply system.
The NERC’s decision to adjust tariffs underscores the complex challenges facing Nigeria’s energy sector. With ongoing discussions and debates surrounding the issue, the path forward remains uncertain, as stakeholders continue to advocate for a fair and sustainable solution to the country’s electricity woes.
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