*Cross-sections of Nigerian electricity consumers condemn continued wide-ranging infractions by the electricity Distribution Companies in the new tariff hikes regime, alleging exploitation, poor service quality, and ‘fraudulent classification’ of customers as ‘Band A users’ in the electricity ecosystem

Gbenga Kayode | 绿帽献妻

Sequel to the recent tariff hikes, which the power sector regulator announced last Wednesday for electricity consumers on Band A, cross-sections of Nigerians, including business people, members of the Manufacturers Association of Nigeria (MAN), and several other categories of electricity consumers, have criticised the Federal Government鈥檚 move, as many believe the increments in rates for customers in the service bracket will further compound the citizens鈥� current socio-economic hardships.

绿帽献妻 reports the Nigerian Electricity Regulatory Commission (NERC) recently jacked up the tariff, particularly for Band A consumers by about 240 percent increase from initial N66 KW/h to N225 KW/h.

Band A power consumers are described as those customers who enjoy at least 20 hours daily supply of power.

Mr. Adebayo Adelabu, Honourable Minister for Power (r); Alhaji Mohammed Idris, Honourable Minister for Information and National Orientation, and other top government ifficials at the Media Briefing in Abuja, FCT聽

According to the Federal Government, the tariff hike for Band A electricity consumers affects approximately 1.8 million, which is said to be about 15 percent of total 12 million “metered” nationwide.

It was gathered that the latest rate increment for Band A customers is also being accompanied by a reduction in the number of Band A “feeders”, which refers to feeders guaranteed to supply a minimum of 20 hours per day across the country.

Such consumers were previously over 1,000 Band A feeders; now, only 481 are classified as Band A, according to report.

Generally, there are about 12 million electricity “customers” in Nigeria, which technically, means 12 million “meter-able” consumption points, such as households, businesses, offices, and others.

In its message to customers on the DisCo’s network, the Ikeja Electricity Distribution Company (Ikeja Electric) Friday, April 5 communicated the latest development, stating: “Dear Esteemed Customer, please be informed that as of April 4th, 2024, the tariff for our Band A feeders has been revised to N225/Kwh, ensuring a minimum supply of 20 hours daily.

“The tariffs for Bands B to E remain unchanged. Please access your feeder band details on our Web site by entering your account or meter number in the 鈥楥ustomer Feeder Information鈥� section under 鈥楥ustomer Service鈥�.鈥�

Imminent tariff hikes for electricity consumers on Bands B, C, D and E?

Meanwhile, the Federal Government has hinted at effecting tariff increments for power consumers across the board; that is, for those on others Bands B, C, D and E respectively.

The latest tariff hikes regime is said to be part of moves to stop the payment of subsidy on electricity supply to consumers in the West African country.

Reacting to the tariff increase for customers on Band A in Nigeria, some power consumers in that category are equally complaining of mindless extortion by the various electricity Distribution Companies (DisCos) in the country amid worsening power supply to homes, businesses and organisations.

By implication, and in view of the latest rate hike for Band A electricity consumers, NERC has hinted that subsidy on electricity has been withdrawn completely from the Band A consumers in the country.

Justification for electricity tariff increases, by Power Minister

Speaking on the latest development in the electricity sector of the economy at a media briefing Friday, April 5, in Abuja, FCT, Mr. Adebayo Adelabu, Honourable Minister for Power, in company with the Vice-Chairman of NERC and Information and National Orientation Minister Mohammed Idirs, disclosed the rationale for the rate increments is to lessen the burden of subsidy payments on the government.

Adelabu stressed the Federal Government would continue with the new tariff regime for Band A consumers despite calls for its reversal.

The Minister noted that the Nigerian Government could no longer continue paying huge sums of money as power subsidy.

He equally said that subsidy on electricity for 2024 alone would cost the Federal Government about N2.9 trillion.

In a barrage of reactions to the development, especially on social media platforms, some power consumers lamented that despite paying exorbitantly for electricity following the tariff hike, they yet were experiencing poor supply in their different neighbourhoods across the country.

Some other Nigerian electricity consumers on Bands B, C, D, and E also alleged that they were now being made to pay N225/KWh by the DisCos, especially the Abuja Electricity Distribution Company (AEDC), a DisCo that has incurred a N200 million fine from NERC for tariff hike infractions.

Other DisCos have also been accused of committing same infractions by failing to charge consumers their old tariffs after the Distribution Companies upgraded their payment platforms to reflect the Band A tariff increment.

It鈥檚 power tariff increments without human face, says Atiku

Former Nigerian Vice-President Atiku Abubakar has aligned reaction to the NERC announcement of a 240 percent increase in power tariff for Band A consumers.

Atiku, in a blogpost via his verified X account Friday, also faulted the Federal Government鈥檚 hike in electricity tariff, and believes the move further compounds the Nigerian consumers鈥� current socio-economic difficulties and attendant dislocations.

He also noted averred the move would further compound the economic woes of a country battling surging inflation levels pegged at 31.70 percent.

Describing the move as a measure “without a human face”, the ex-Nigerian Vice-President stated: “The increase in electricity tariff comes at a time when Nigerian citizens are going through excruciating difficulties occasioned by the withdrawal of subsidy on PMS (otherwise known as petrol) and floating of the domestic currency.

鈥淭he government has not successfully dealt with the pains associated with the implementation of those measures, and now this.”

Atiku further asserted: “The hike in electricity tariff will create more difficulties for the citizens as inflationary pressures are elevated.

鈥淥ur manufacturing sector will similarly be impacted negatively.”

The erstwhile Vice-President said: “Not only are they paying higher interest rates on their bank loans but also paying more for diesel, paying higher wages as a result of the new minimum wage.

“The President鈥檚 men are pushing the economy into a deeper crisis. His (Bola Ahmed Tinubu’s) reforms are without a human face.鈥�

Atiku, who was a Presidential Candidate in the 2023 Elections in the country, further contended that the rise in electricity tariffs would not resolve the weighty challenges of the power sector.

He wrote: “It is important that we understand the root cause of the inefficiencies in the power sector before unleashing another dose of reforms.

“It is time to revisit the privatisation exercise that produced the DisCos.”

He added: “Tinubu must (a) ensure that these reforms are sequenced, (b) implement measures to mitigate the pain, and (c) hold the NERC responsible for ensuring improved service delivery.鈥�

In a related reaction to the status quo in the power industry, Governor Ademola Adeleke of Osun State urged the Management of Ibadan Electricity Distribution Company (IBEDC) to address the current irregular power supply in the state, in the South-West region of the country.

Governor Adeleke, made the demand at a recent meeting held with the Management of the company, in Ibadan, Oyo State capital, according to report.

He also described Osun State as a critical stakeholder in the Nigerian power sector, against the backdrop of the fact that Osogbo, the state capital, hosts the country’s National Transmission Control Centre.

Adeleke reportedly said it was 鈥渦nacceptable that the state will be having epileptic power supply”, noting the unfortunate power supply situation has been affecting the state’s economy, as well as corporate organisations and small-scale businesses negatively.

DisCos flouting tariff hike guidelines with poor power supply, exploitation and extortion

Also in his reaction to the tariff hike regime in the power sector, an X user identified as Heybeedo @Fadodunabayomi, stated, 鈥淢y environment was listed among Band A, but we have never used a 20-hour electricity supply per day.

“As I am typing, there has been no light since around 1a.m. in the early hours of today (Saturday). Who will pay for the shortfall in their supply? A lot needs to be clarified.鈥�

Kaduna-based Tariq Abdulazeez @tariqq2 noted in his post: 鈥淭he Kaduna DisCo has failed to comply with the new regulations thereby upgrading 80 percent of its customers to Band A. We barely get 8 hours power supply.”

Certain Olaosun Sina @OlaosunSina, an electricity consumer with the Ikeja Electric (IKEDC), in Lagos, as well commented on his X page: 鈥淚KEDC claims OPIC in Isheri-North belongs to Band A and immediately implemented N225 per KwH N50,000 energy (VAT inclusive) purchased… (Thursday) gave 207 KwH Units.

“Light was taken since 9.34a.m. today (Friday) 5th April and as of 3.37p.m. yet to come. This is a pure SCAM!鈥�

Michael Ifeanyi, a power consumer with the Enugu Electricity Distribution Company (EEDC) franchise network, posted on the platform, 鈥淧lease NERC, ask Enugu Electricity Distribution Companies to downgrade Centenary Estate Enugu to band C we hardly enjoy 10 hours light. They are charging us for band A.鈥�

Jonah @Otyjonah also wrote: 鈥淢y environment is under Band A even though the DisCo has refused to issue us a prepaid meter.

“I have seen power supply since 11p.m on the 4th of April. Today is 6th and there is no single hour of light in almost 48 hrs. Will I be made to pay for the darkness at the end of the month @NERCNG?鈥�

Lere Ojedokun @doklere, another consumer alleged 鈥淭here are so much secrecy and loopholes in the electricity ecosystem which investors and players exploit to milk electricity consumers. This is why we will continue to be at their mercy.鈥�

Accusing the power regulatory Commissio of irresponsibility to mandate, Oluwakemi @tykeemon asked, 鈥淎re there really any Band A users in Nigeria? Are we joking?

“I get less than eight hours of electricity supply daily and I have been fraudulently classified as a Band A user. @NERCNG, you are not a regulator but an accomplice to rip off.鈥�

From the South-South region of Nigeria, Isaac Emalunegbe reportedly disclosed: 鈥淲e in Calabar (Cross River State capital) around the Akai Effa axis suffer from your DisCo staff here.

“They will tell us we are in Band A and we get supply less than those in Band C, and at the end of every month, they will issue an exorbitant bill. I was a victim in 2021.鈥�

Calls for sack of Minister for Power

Meanwhile, as some other consumers fume over the latest tariff increment for Band A, Lere Olayinka, a chieftain of the Peoples Democratic Party in Ekiti State, has urged聽 President Bola Ahmed Tinubu to sack Mr. Adebayo Adelabu, Minister for Power for alleged incompetence reflected in his inability to ensure a steady power supply to Nigerians.

Olayinka, who made the recommendation to the President in a statement issued at the weekend in Ado Ekiti, Ekiti State capital, accused Minister Adelabu of insensitivity over the “incessant electricity tariff increases” despite failure to ensure constant power supply since he assumed office August 2023.

In his statement titled, “Sack Power Minister, Bayo Adelabu, now; he can鈥檛 even give you constant electricity in Aso Villa, PDP chieftain tells Tinubu”, he admonished the Federal Government to save itself from further embarrassment by sacking the Minister for Power and replacing him with a professional.

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