Elumelu mobilises minority Reps against electricity tariff hike
The Minority Leader of the house of Representatives, Mr Ndudi elumelu, has condemned the plan by electricity distribution companies to increase electricity tariff.
elumelu argued that any increase in electricity tariff would worsen “the already excruciating financial burden on homes, personal businesses, companies and the overall productive sectors.”
The NERC had approved the increment in its December 2019 Minor Review of Multiyear Tariff Order 2015 and Minimum Remittance Order for the Year 2020.
The commission had said the order was issued to reflect the impact of changes in the minor review variables in the determination of cost-reflective tariffs and relevant tariff and market shortfalls for 2019 and 2020.
It had added that the order also determined the minimum remittances payable by the Discos in meeting their market obligations based on the allowed tariffs.
The NERC had on Saturday directed the 11 electricity distribution companies in the country to increase their tariffs beginning from April.
But elumelu, in statement issued in Abuja on Thursday, pointed out that Nigerians were passing through “grave economic stress,” adding that anything that would aggravate the situation, such as an increase in electricity tariff, “is completely unacceptable.”
he assured Nigerians that the minority caucus would continue to protect their interest “by monitoring prevailing tariff on electricity and levies on other essential services in the country to ensure that Nigerians are not overburdened.”
The statement said the minority leader “directs all members of the minority caucus in relevant committees to intensify their oversight functions in this direction in the interest of Nigerians.”
The minority leader noted that electricity was pivotal to the economic and social lives of
Nigerians and urged the NERC to seek ways of making power affordable and available to consumers instead of increasing tariff.
An analysis by The PUNCH had showed that the Federal Government’s agency had actually increased tariffs payable by all the major classes of power consumers.
It was observed that tariffs for the three major categories of consumers in Ikeja, Ibadan, Kano and Port harcourt distribution companies were jerked up.
With the new plan, residential customers in the R3 category under Ikeja Disco, who currently pay N26.5/kwh, will start paying N36.49/kwh from April, indicating an increase of N9.99.
Commercial customers in the C3 category under this Disco, who currently pay N24.63/kwh, will start paying
N38.41/kwh, representing a hike of N13.78.
Industrial customers in the D3 category served by Ikeja Disco, who pay N25.82/kwh currently, will start paying N38.85/kwh, representing an increase of N13.03.
Residential customers of Ibadan, Kano and Port harcourt discos, who currently pay N29.17/kwh, N24.43/kwh and N27.49/kwh, will from April start paying N44.66/ kwh, N42.63/kwh and N48.39/kwh, respectively.
Commercial customers in the C3 category for Ibadan, Kano and Port harcourt Discos, who currently pay N27.11/ kwh, N22.71/kwh and N25.14/ kwh, will, from April, pay N42.03/kwh, N40.27/kwh and N48.39/kwh, respectively.
Also, industrial customers in the D3 category under the Ibadan, Kano and Port harcourt Discos, who currently pay N28.42/kwh, N23.8/kwh and N25.7/kwh respectively, will, beginning from April, pay N45.4/kwh, N41.45/ kwh and N48.39/kwh.
Going by the latest order of the NERC, it therefore implies that power tariffs in Nigeria have increased by over threefold in the last five years.
On August 28, 2019, The PUNCH exclusively reported that electricity tariffs grew threefold in four years. According to the report, the rates increased by more than 300 per cent during the period.
The report stated that between 2015 and 2019, the average electricity tariff climbed from N12 kwh to about N32kwh.
•L-R: Corporal Moboluwaji Ariyo; Divisional Police Officer, Warewa Police Station, Ogun State, Folake Afeniforo; and Inspector Babatunde Shobowale, during their visit to PUNCH Place at Magboro, Ogun State …on Thursday. Photo: Jesusegun Alagbe