*The House of Representatives, in the National Assembly, Abuja, asks the Nigerian Electricity Regulatory Commission, and 11 electricity Distribution Companies to reverse the recent tariff hike for Band A consumers immediately, asserting that subscribers on the power Feeders cannot afford the price increment

Gbenga Kayode | 绿帽献妻

In a deliberate move to curb certain 鈥榠mmoderations鈥� of both the power industry regulator and players in view of the current economic realities in the country, the House of Representatives, in the National Assembly (NASS), Abuja, FCT, has asked the Nigerian Electricity Regulatory Commission (NERC) and 11 electricity Distribution Companies (DisCos) to reverse the recent tariff hike for Band A Feeder consumers immediately.

The Lower House of the Federal Legislature Tuesday July 23, 2024, reached the resolution, following the adoption of a report presented by the House Committee on Power.

Nigeria’s House of Representatives in a plenary

Hon. Victor Nwokolo, Chairman of the House Committee, who presented the report, stated that Nigerian electricity consumers just could not afford the new tariff in respect of the hardship in the West African country.

The Committee, after the Committee of the Whole, therefore, passed the resolution, recommended a return to the status quo, maintaining the Band A cost prior to the latest increment.

The House of Representatives also moved to conduct further investigation into the NERC cum DisCos鈥� recent power tariff hike.

It is recalled that NERC, in April this year, had announced a hike affecting Band A customers, who are to pay N225 per kilowatt per hour (Kw/h).

The industry regulatory Commission also assured electricity consumers that Band A subscribers would have at least 20 hours of power supply daily.

NERC further noted that only electricity customers on Band A would be affected by the increase.

The Commission also disclosed in a statement that only 15 percent of the electricity consumers in Nigeria were affected by the tariff hike.

Musliu Oseni, Vice-Chairman of NERC, reportedly said in April 2024: 鈥淲e currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent now qualify as Band-A feeders.

鈥淭hese feeders only service 15 percent of total electricity customers connected to the feeders.

鈥淭he commission has issued an order which is titled April supplementary order and the commission allows a 235 kilowatt per hour.鈥�

DisCos explain rationale for power tariff increment for Band A Feeder consumers

It should be noted that cross-sections of Nigerian electricity consumers have continued to express their displeasure and frustrations over recent power tariff increment for Band A customers.

Yet, the electricity Distribution Companies have claimed that the recent upward price adjustment resulted from fluctuations in the Exchange Rate, high inflation, generation capacity, and cost of gas in the economy.

The DisCos had announced their decisions to jack up the rate from existing N206.80KW/h to N209.50KW/h.

However, several customers have complained about their DisCos, especially the Ikeja Electric (IKEDC), for its unsolicited and forceful migration of their category from Band B to A, effective from July 1, 2024.

Several over DisCos as of July 3 this year also began issuing public notices to the general public, noting that the power tariff for Band A consumers, expected to enjoy electricity supply for between 20 and 24 hours, had been increased in line with the Multi-Year Tariff Supplementary Order (MYTO), approved by the Nigerian Electricity Regulatory Commission.

Speaking on the increment recently, Francis Agoha, Acting Managing Director of Ibadan Electricity Distribution Company (IBEDC) affirmed NERC had approved the increment, as captured in the Multi-Year Tariff Supplementary Order.

Agoha stated: 鈥淭hese factors have significantly impacted operational costs, and the new tariff will mitigate these financial pressures while continuing to deliver high-quality electricity services.

鈥淚t is important to note that this adjustment affects only our Band A customers.”

He further said: “The tariffs for Bands B, C, D, and E remain unchanged.

鈥淲e remain committed to providing reliable and efficient electricity services to all our customers across different bands.鈥�

According to him, any change in tariff could be a concern for customers.

He, however, stressed that the adjustment was necessary to maintain and improve the quality of services.

“Our goal is to ensure that our customers receive the best possible value for their money.”

Likewise, Abdulazeez Abdullahi, Head of Corporate Communication at the Kaduna Electricity Distribution Company (KEDC), stated in a communication titled, “Upward Review of Tariff for Band A Feeders”, noted the premium customers would then, pay N209.5/kWh instead of N206.80/kWh.

Abdullahi as well affirmed that the new tariff became effective on July 1.

The KEDC statement noted: “Dear esteemed customers, the Management of Kaduna Electric informs the public of an upward review in the tariff of Band A feeders from N206.80/kWh to N209.5/kWh.

鈥淭he review is effective from 1st July, 2024, and affects both prepaid and postpaid customers.”

He stated: “Kaduna Electric assures customers on its Band A feeders of the continued availability of 20-24hr supply daily as stipulated in the Service Based Tariff regime.

鈥淭he public should please note that the tariff for Bands B, C, D, and E remains unchanged.鈥�

The Eko Electricity Distribution Company (EKEDC), through its official X account said that the new tariff increment took effect from July 1.

The company stated: “Dear Valued Customer, Kindly be informed that there has been an upward review in the Band A tariff rate from N206.80 to N209.50kW/h.

“This review is effective July 1, 2024.

Rest assured of our commitment to maintaining the guaranteed 20-hour minimum power supply in line with the Service Based Tariff.”

Nonetheless, instead of charging the announced new N209.5/kWh tariff, the electricity DisCos have continued to charge N250.00/kWh under an inexplicable guise till this day, thereby compounding the increasing economic hardship of several millions of Nigerian consumers.

Consumers lampoon Ikeja Electric, EKEDC, others for 鈥榝orceful migration鈥� to Band A Feeders

Sequel to its announcement of a review of electricity tariff for Band A consumers across its franchise network, the Ikeja Electric, which serves parts of Lagos and Ogun states, in a statement issued via its verified social media account also said the power service provider鈥檚 consumers would be paying N209.5/kWh instead of N206.80/kWh, beginning from July 1.

According IKEDC, the new rate, which is 鈥渋n line with the service based tariff regime鈥� is effective from July 1鈥�. while the tariffs for Bands B, C, D and E 鈥渞emain unchanged.”

It further stated that electricity consumers can “rest assured that this development will further sustain the improved service delivery currently being experienced across all Feeder Bands within the Ikeja Electric network.”

However, recent checks indicated that the DisCo has not honoured its pledge, that tariffs for Bands B, C, D and E remain unchanged.”

Suddenly, the IKEDC, in text messages (SMS) to several customers Wednesday, July 3, 2024, in several parts of Lagos and Ogun states, whom the firm claimed they were formerly on Band B had been upgraded to Band A without their prior knowledge.

The DisCo stated in one of such messages: “Dear Esteemed Customer, please be informed that due to a recent feeder upgrade and consequent increase in power supply in your location, your tariff class has been moved from band B to band A. “Thank you for allowing us to serve you.”

Subsequently, in order to verify the authenticity of the message from the IKEDC to its customers in the areas, a consumer simply identified as Mr. Oladeji said he had to buy N2,000 worth of electricity Wednesday evening, and immediately, he was allocated 8 units of token of electricity as against the usual 28 units for the same amount prior to July 1 this year.

It was gathered that this unexpected development had been causing undue anxiety and concerns among several electricity consumers who received the message in those areas since that Wednesday.

There are yet tonnes of complaints about epileptic power supply in the last three days despite the DisCos鈥� assurance of getting 20-24 hours of electricity on the so-called Band A consumers in the category.

Sequel to the announcement on the latest tariff adjustment, several electricity consumers have reacted differently to DisCos’ power tariff increments, especially in the social media space.

Also reacting to a text message IKEDC sent to customers, announcing the unsolicited upgrade from Band B to Band A with additional cost, a Septuagenarian said: “These people are mad; look at the SMS Ikeja Electric sent to me, notifying me of the unsolicited migration from their so-called Band B to Band A.”

Also a company executive, who preferred to be anonymous queried the rationale behind changing power consumers’ existing Band to another without being informed.

He told this publication: “This is simply fraudulent!”

鈥榃hy force me to go on a Band A that I can鈥檛 afford?鈥� Consumers query DisCos

Reacting to the Band A Feeder tariff increment for consumers in Lagos, Prof. David Oke, Provost of College of Medicine, University of Lagos (CMUL), also explained how EKEDC sent a bill, 鈥渢hree times what we used to pay.

鈥淭hey said they put us on Band A and I had a meeting with them telling them they can鈥檛 put on a band that we can鈥檛 afford. Leave us where we were in Band B, they said no.

鈥淏ut this is a democratic government, how can you force me to go on a Band that I know I can鈥檛 afford?鈥�

Prof. Oke had spoken on behalf of the Management of the College of Medicine of the University of Lagos and Lagos University Teaching Hospital (LUTH), having cried out over what the premier health institutions described as an outrageous electricity bill charged by Eko Electricity Distribution Company (EKEDC) from May 2024.

The institutions said they were recently jointly presented with a bill of about N280 million for May instead of the less than N100 million they used to pay, Premium Times report said.

Due to the disagreement over the bill, for about 10 days between June and July, electricity to the two health institutions was disconnected, leading to a protest by medical students who said the poor power supply could lead to their failure in the forthcoming examinations.

Oke, nonetheless, noted that the situation has been 鈥渢emporarily resolved鈥� and that power has since been restored.

Yet, he blamed EKEDC for 鈥渋mposing an unaffordable tariff鈥� on the College of Medicine and the hospital since the introduction of the 鈥榖and system鈥� in the Nigerian power supply ecosystem.

In his remarks also, Prof. Wasiu Adeyemo, Chief Medical Director (CMD) of the hospital, Prof. Oke鈥檚, insisting that no public institution offering social services, such as health and education, can afford such 鈥渙utrageous charges鈥� in the economy as of now.

However, the electricity company has denied the allegation, saying the tariff charged is not an imposition but that the charges are determined by the feeder supplying power to the area and the amount of electricity being supplied per day.

Responding to such reactions from consumers, Babatunde Lasaki, Manager of Corporate Communications of EKEDC, reportedly explained the situation away, saying that 鈥淏and A isn鈥檛 enforced as perceived, but it is determined by the feeder and location of electricity consumers.鈥�

He reportedly said: 鈥淣obody can force a band on anybody. It is about your area and the feeder serving your area.

鈥淚f the feeder serving your area is giving you a 20-hour power supply and above, automatically you guys fall under Band A.

鈥淭he price is not fixed by the distribution company. It is by regulators. The college and LUTH have been enjoying 20hrs of supply. They used to be on their own power plant but they couldn鈥檛 keep up with its cost.鈥�

According to him, electricity consumers should understand that distribution companies cannot unilaterally fix price, insisting that the 鈥減ower sector is a highly regulated sector.鈥�

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