Elumelu mo­bilises mi­nor­ity Reps against elec­tric­ity tar­iff hike

The Punch - - NEWS - Leke Baiyewu, Abuja

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

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