PDP, others kick as NERC denies hike in electricity tariff

…Say increase in electricity tariff will worsen suffering of Nigerians

…We’ll consult with stakeholders before final decision on review of tariff is effected – NERC

The Peoples Democratic Party (PDP), electricity consumer groups as well as frontline Civil Rights Advocacy group – Human Rights Writers Association of Nigeria (HURIWA), on Sunday, condemned the planned increase in electricity tariff by Federal Government through the Nigerian Electricity Regulatory Commission (NERC).

This is even as NERC on Sunday said no tariff increase has been approved by the commission yet.

The Daily Times recalls that in the NERC at the weekend in a directive signed its Chairman, Prof. James Momoh and Secretary, Mr. Dafe Akpedeye, and published at its website, approved an increase in electricity tariff by the 11 Electricity Distribution Companies (DisCos) in the country with effect from January 1, 2020.

PDP described as unacceptable hike in electricity tariff by Federal Government. The party rejected in its entirety, the over 200 percent increase in electricity tariff announced by the Buhari administration, describing it as draconian and completely against the interest and well-being of Nigerians.

The party in a statement on Sunday charged the Federal Government to immediately rescind the “obnoxious and provocative” policy and consult further with Nigerians before any such tariff hike.

The PDP described the increase in electricity tariff as a furtherance of the fleecing of Nigerians, who are already overburdened and groaning under the weight of high costs, economic repression and heavy taxes foisted by the APC administration.

“It is lamentable that Nigerians, who are already suffering the devastating negative impact of the recent increase in the Value Added Tax (VAT) from 5 percent to 7.5 by the APC administration, are now being further suppressed with increased electricity tariff.

“Our party holds that the increase in electricity tariff, under the prevailing harsh economic conditions, is injurious to the well-being of Nigerians as it will further stress the productive sector and lead to an upsurge in the cost of regular and essential goods and services, including food, medicine, housing, education and other critical needs.

“This APC policy, if allowed, will worsen the suffering of Nigerians as it will put more stress on already overburdened families, cripple businesses, result in job losses and exacerbate the prevailing frightening unemployment rate under the Buhari administration.

“Moreover, the PDP invites Nigerians to note that this toxic and distasteful “new year gift” by the APC administration, at a time Nigerians are coming back from yuletide festivities, shows that the APC is indeed unfeeling, insensitive and have no iota of regard for the sensibilities and well-being of our citizens”, said party spokesperson, Kola Ologbondiyan.

The party insisted that any administration that has the interest of the people at heart should provide alternatives or hold consultations with the people before imposing such harsh tariff on its citizenry.

It therefore urged the National Assembly to rescue Nigerians from such draconian policy by deploying its statutory legislative instruments to call the Federal Government to order in the interest of the nation.

Also, electricity consumer groups in the country have kicked against increasing tariff for end-user customers.

The groups, Energy Consumer Rights and Responsibilities Initiative and the All Electricity Consumer Protection Forum told the News Agency of Nigeria (NAN) in Lagos that increment in electricity tariff was unjustified based on present realities.

Mr. Sural Fadairo, National President, Energy Consumer Rights and Responsibilities Initiative, noted that increasing the cost of electricity was not the panacea to Nigeria’s energy crisis.

“If they want to increase tariff because the Distribution Companies are under remitting due to debts by consumers, that will not solve the problem.

“If people are refusing to pay now because they are disputing their bills will they now pay if it is further increased?

“What they need to do is to meter all electricity customers, so that we can end the issue of estimated billing.

“So, from the consumer point of view, we are totally against any increment because power generation and supply has not improved significantly in the country, “he said.

Also, Mr. Adeola Samuel-Ilori, National Coordinator, All Electricity Consumers Protection Forum, said the increase was totally uncalled for in all ramifications.

He said: “The basis for such increase at this time can’t be justified in that consumers have not been metered and they still purchase transformers and other line materials by themselves with attendant extortion via estimated billings.

”All these are not taken into consideration and extensively dealt with before contemplating tariff increase”.

Also, Civil Rights Advocacy group – Human Rights Writers Association of Nigeria (HURIWA), has carpeted the Federal government over the planned hike in the tariffs payable for electricity supply across the major city centres of the country, saying that the multiplier effect would be felt immediately due to spike in the costs of living.

Through the National Coordinator, Comrade Emmanuel Onwubiko and the National Media Affairs Director, Miss Zainab Yusuf, Human Rights Writers Association of Nigeria (HURIWA) said the focus of the Federal government in the beginning phase of the year should not be to impose grave hardship on the populace just coming out of the seasonal festivity of Christmas and New Year but any good government should be more focused on how quality education can be delivered to millions of the children of Nigerian suffering families that would be returning to schools in the next few days.

“The Federal government should be focused in this New Year on how to improve health care and on how to curb the internal corruption that has destroyed the so-called schools feeding programme instead of the Federal government of President Muhammadu Buhari working day and night to unleash devastating economic strangulation through unsustainable reviewed electricity power tariffs on millions of Nigerians most of whom are unemployed, hungry, sick and poor,” HURIWA said.

However, the Nigerian Electricity Regulatory Commission (NERC) on Sunday denied that it had authorised an an increase in electricity tariff across the country with effect from January 1, 2020.

Mr. Usman Arabi, General Manager, Public Affairs (NERC), made the clarification in a statement issued on the agency’s website, obtained by the News Agency of Nigeria (NAN) in Lagos on Sunday.

Arabi said:” The attention of the NERC has been drawn to the publication in several electronic and print media that end-user electricity tariffs have been increased following the approval of the minor review (2016 – 2018) of the 2015 Multi Year Tariff Order on Aug. 21, 2019.

“We wish to provide guidance that the minor review implemented by the commission was a retrospective adjustment of the tariff regime released in 2015.

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“This is to account for changes in macro-economic indices for the years 2016, 2017 and 2018 thus providing certainty about revenue shortfall that may have arisen due to the differential between tariffs approved by the regulator and actual end-user tariffs.

“The commission therefore wish to notify the general public that no tariff increase has been approved by the Commission vide the order.”

He said, however NERC, in the discharge of its statutory responsibilities enshrined under the Electric Power Sector Reform Act, would continue to undertake periodic reviews of electricity tariffs in accordance with the prevailing tariff methodology.

According to him, in all instances of such reviews and rule making, the commission will widely consult with stakeholders and final decision will take due regard of all contributions.