Ripples over hike in electricity tariff

…It’s insensitive, evil, will worsen poverty –Atiku, others

…Step towards efficient electricity sector – FG

…NERC fines AEDC N200m, orders refund of customers

By Tunde Opalana & Ukpono Ukpong

The dust being raised by the recent hike in electricity tariff is yet to settle, as various groups have been reacting to the development and its far-reaching impact on already traumatized Nigerians.

Apart from the condemnation by the Minority Caucus of the House of Representatives, former vice president of Nigeria, Alhaji Atiku Abubakar has said increase in electricity tariff will aggravate the suffering of the already devastated Nigerians.

With the hike in tariff, the presidential candidate of the Peoples Democratic Party (PDP/ said the government is unleashing another dose of reforms without adequate notice and without an adequate post-reform plan to mitigate the pain.

In a statement Friday evening , Atiku said 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 and floating of the domestic currency.”

According to him, “the government has not successfully dealt with the pains associated with the implementation of those measures, and now this. The hike in electricity tariff will create more difficulties for the citizens as inflationary pressures are elevated.

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“Our manufacturing sector will similarly be impacted negatively. 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’s men are pushing the economy into a deeper crisis. His reforms are without a human face.

“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 privatization exercise that produced the DISCOs.”

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The Waziri Adamawa therefore, advised President Bola Tinubu to “ensure that these reforms are sequenced, and that he must “implement measures to mitigate the pain, and also hold the NERC responsible for ensuring improved service delivery.”

However, in a stout defence of the new hike, the Federal Government has assured Nigerians that the recent review in electricity tariff is a strategic step toward “a more sustainable, efficient, and equitable” electricity sector.

The government said this will lay the groundwork for significant improvements in service delivery, infrastructure development, and economic prosperity.

Minister of Information and National Orientation, Mohammed Idris disclosed this Friday in Abuja at a press conference where he addressed stakeholders in the Nigerian Electricity Supply Industry (NESI), and all Nigerians on the recently approved tariff review by the Nigerian Electricity Regulatory Commission (NERC).

Present at the briefing were; Mr Adebayo Adelabu, Minister of Power; Mrs. Olu Verheijen, Special Adviser to the President on Energy; Dr. Musiliu Oseni, Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), other Commissioners of the NERC, and indeed other stakeholders.

While saying that misconceptions and concerns around the tariff review are understandable, Idris said government’s

focus is to remain steadfast on ensuring that the electricity sector’s transformation benefits all Nigerians, supports industries, and propels the nation towards its bright future.

The minister recalled that the President Bola Ahmed Tinubu signed the Electricity Act (Amendment) Bill, 2024 into law to further strengthen the governance structure in the Power Sector and mandates the GENCOs to set aside 5% of their actual annual operating expenditure from the preceding year for the development of the host communities.

The Act, he said also removed Electricity from the Exclusive list to empower state government to generate and distribute electricity to residents.

Speaking on further efforts of the Tinubu administration in reshaping the economy, Idris said “the recent establishment of the Presidential Economic Coordination Council and the Economic Management Team Emergency Task Force underscores Mr. President’s commitment to fostering a unified strategy for economic management that leverages the expertise and insights of key stakeholders from both the public and private sectors.

“These teams will serve as platforms for robust discussions, analysis, and decision-making to drive sustainable economic growth, job creation, and prosperity for all Nigerians.

“The launch of the Renewed Hope Infrastructure Development Fund (RHIDF) aims to raise about N20 trillion for investment in critical sectors such as the real sector of the economy, transport, social services, agriculture, and ICT among others.

“The Fund seeks to support projects that promote growth, enhance local value-addition, create employment opportunities, and promote exports.

“For emphasis, the projects to be targeted by the Fund include the construction of the Lagos-Calabar Coastal highway, which kick-started recently, the Sokoto-Badagry Expressway, Lagos-Kano Expressway, the Eastern Rail Lines and the modernization of ports and aviation facilities across the country.

“To expand access to education as a potent weapon against poverty, the President has signed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) bill, 2015, into law. This groundbreaking initiative goes beyond mere legislation – it is a revolutionary approach to set up a permanent structure that would support the pursuit of education by our youths.

“A few days ago, the Federal Government unveiled a progressive policy in the power sector, which aims to boost sufficiency in power supply for all Nigerians.

“The most important aspect of the policy is that the Tinubu administration is sustaining electricity subsidy to 85% of Nigerian consumers, which re-justifies its credential as a Pro-People democratic government while effecting electricity tariff increment to only 15% of the electricity consumer population.”

The Information minister restated government’s commitment to transparency in public communication as a deliberate policy to build trust between the government and its citizens, which he said is paramount because transparency plays a crucial role in fostering and reinforcing that trust.

“We understand that transparency is not just a principle to be upheld but a foundation for good governance. Therefore, we are committed to ensuring that our communication channels remain open, accessible, and informative while we strive to provide accurate, timely, and relevant information to the public on matters of governance, policy, and programme,” he said.

Meanwhile, the Nigerian Electricity Regulatory Commission (NERC), has fined the Abuja Electricity Distribution Company (AEDC), the sum of N200 million for violating the New Tariff Order.

This is as the Commission also ordered the AEDC to reimburse all its customers in Bands B, C, D and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.

The order was contained in a statement issued to journalists by the Public Affairs Department.

According to the statement, the decision followed a detailed review and customer feedback, which revealed that AEDC had applied the new tariff to all customer bands, contrary to the Order, which was designed to ensure fair billing practices.

“The Nigerian Electricity Regulatory Commission has taken enforcement action against the Abuja Electricity Distribution Plc (“AEDC”) for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC (the “Order”). AEDC has been fined ₦200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing.

“AEDC is therefore mandated to: Reimburse all customers in Bands B, C, D and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.

“Reimburse through the provision of the balance of customer tokens that the affected customers would be entitled to receive at the applicable rates and all token reimbursements shall be issued to the affected customers by 11 April 2024.

“Pay the sum of ₦200,000,000.00 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order.

“File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.

“The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.” The statement reads