There is palpable tension among electricity users following the speculations that the Federal Government may effect another tariff increase on September 1, 2021, based on details contained in a new tariff order issued by the Nigerian Electricity Regulatory Commission, (NERC) to Electricity Distribution Companies (DisCos) and Electricity Generation Companies (GenCos), informing them of the approval to increase electricity tariffs.
Recall that the Minister of Power, Engr. Sale Mamman, admitted in April that the electricity tariff was to be increased in July, but not “significantly”.
According to him, instead of a significant hike in electricity tariff, “Nigerians should expect an increase in efficiency in the sector to reduce tariffs while managing headwinds from foreign exchange and inflation”.
Although, there have been several denials, electricity consumers and indeed labour unions say they are not fooled and know that a tariff increase had been perfected and merely awaiting official announcement.
During a recent television programme in Abuja, President of the Nigeria Consumer Protection Network, Barrister Kunle Kola Olubiyo, had opposed the planned increase of tariff, saying it will amount to insensitive on the part of the government and the electricity distribution companies.
According to him, continuous increment in tariff may not be the silver bullet that will solve the power sector problem.
He urged the Federal Government to revisit the agreement with the new owners of electricity facilities, wondering why there have been little or no investments in power Infrastructures since the assets were sold to private sector players.
Also, the NLC Deputy President, Joe Ajaero, asked the Federal Government not to increase tariffs.
Ajaero, who is also the General Secretary of the National Union of Electricity Employees, (NUEE), wondered why NERC was considering another tariff increase when the wages of workers have remained unchanged.
He said there was a regulatory hijack of the power sector by the DisCos, who he said were bent on transferring their “inefficiencies” on poor Nigerians.
Meanwhile, the DisCos, who are expected to inform their customers of a tariff increase are yet to make any public pronouncement that could come into effect in a couple of days.
The website of the industry regulator, NERC, where tariff orders for all DisCos are published did not have any copy of the new tariff orders and neither did it make any formal announcement.
