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Home Sectors Energy

Increase in electricity tariff insensitive, inhuman – Reps minority caucus tells NERC

Cyrus Ademola by Cyrus Ademola
April 5, 2024
in Energy, Politics, Sectors
NERC, DisCos
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The Minority Caucus in the House of Representatives has labeled the increase in electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC) as insensitive, inhuman, and absolutely unnecessary.

The minority leader of the House of Representatives, Rep. Kingsley Chinda, expressed these sentiments in a statement issued in Abuja on Friday.

He pointed out that the population is dealing with rapid inflation, escalating unemployment, and insufficient access to essential services.

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According to him, the sharp rise in tariffs has added an insufferable burden to the populace, already under strain, making economic conditions worse and deepening the inequality among citizens.

  • “Such a hike, which is over 200% above the rate of inflation, utterly disregards the plight of ordinary citizens, who are grappling with the adverse effects of the removal of oil subsidy.
  • “We note that in the immediate aftermath of the announcement of the tariff hike, NERC claimed that the hike affects only 12% of electricity consumers who enjoy a minimum of 20 hours of electricity a day.
  • “The truth has become stark that this is stark lie. The hike, from data put out by the DISCOS, affects all electricity consumers,” he said.

Furthermore, he called on President Bola Tinubu to persuade NERC to retract its decision and focus on the well-being of the citizens.

The lawmaker emphasized the need for transparent dialogue and inclusive decision-making to tackle the underlying issues of the energy sector’s inefficiencies and guarantee lasting solutions.

  • “Citizens have the right to demand efficient service delivery and fair pricing mechanisms that align with their economic realities.
  • “In solidarity with the Nigerian people, we stand firm in our condemnation of this unjustifiable increase in electricity tariffs and call for immediate action to alleviate the burdens imposed on the populace,” he added.

Backstory

Nairemetrics reported on Wednesday that  the Nigerian Electricity Regulatory Commission, NERC, announced am increase in the electricity tariff for customers under the Band A classification.

  • The Vice Chairman of NERC, Musliu Oseni, said that the increase will see customers paying N225/kWh instead of the previous N66.
  • According to NERC, Customers under Band A are those who enjoy 20 hours electricity supply on a daily basis.
  • Oseni noted that this represents less than 15% of the total consumers of the electricity supply in the country.
  • “The commission now reviewed further the application by the distribution companies and have decided that only the 17% feeders and less than 15% customers will be affected by any rate increase that the commission will ever approve for the distribution company.
  • “The order takes effect from today and in that order the commission has approved a rate review of N225 per killowatt hour for just under 15% of the customer population in NESI. That means that less than 15% of the customers will be affected,” Oseni added.

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Tags: Electricity tariffenergyNERCReps Minority Caucus
Cyrus Ademola

Cyrus Ademola

  • Cyrus Ademola is an energy and economy analyst with over half a decade experience in journalism, research-based oped, economic reportage and energy analysis. His works have been featured on different media outlets, covering from oil and gas to business trends.

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