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Customers stand against the power rate hike

Customers stand against the power rate hike
Photo by Murat Onder- Ask Nigeria

The electricity tariff has increased to N72.2 per unit from the previous N66.

Customers of electricity all around the nation have stood against the discreet and surreptitiously power rate hike by the electricity distribution companies, which they described as “a perfect robbery” amidst the deteriorated economic realities in Nigeria. Several residents continue to lament the rate hike saying that the electricity tariff has now increased to N72.2 per unit from the previous N66, a higher price for poorer services. At the same time, some other residents expressed concerns about how the electricity distribution companies did not inform the general public before increasing the power rates.

In response to this, Abuja Electricity Distribution Company has stated on its official Twitter page that the recent rate hike was in accordance with the order of the Nigerian Electricity Regulatory Commission (NERC). On its website, the commission stated that one of their primary functions, as contained in Section 32 (d) of the Electric Power Sector Reform Act, 2005, was to ensure that the prices charged by licensees were fair to customers and sufficient to allow the licensees to finance their activities and obtain reasonable profit for efficient operations.

All inputs are evaluated with stakeholders once every five years.

Moreover, In accordance with its mandate from Section 76 of the EPSR Act 2005, the commission established a methodology for determining electricity tariffs in the Nigerian Electricity Supply Industry and subsequently issued a tariff order called the Multi-Year Tariff Order that sets out tariffs for the generation, transmission and distribution of electricity in Nigeria. The Multi-Year Tariff Order establishes a tariff framework for the Nigeria Electricity Supply Industry (NESI) that would last for 15 years, subject to annual, minimal revisions.

As such, the Multi-Year Tariff Order’s stated goal is to establish rates indicative of actual costs, ensuring that the electricity industry has the resources it needs to operate effectively. All inputs are evaluated with stakeholders once every five years, and reviews are conducted every time a significant change occurs in a slight set of indicators such as inflation, interest rates, currency rates, and generating capacity. Meanwhile, the tariff increase was first observed on the Tariff Band A Non-MD, which was increased from N57.55 per unit in December to N68.2 per unit.

The latest tariff increase was consistent with the Multi-Year Tariff Order.

According to a report, the increase on the Tariff Band A Non-MD is estimated to be about a 19 percent increase in tariff. Uket Obonga, national secretary of Nigeria’s electricity consumer advocacy network, responded by saying the latest increase in power tariffs was consistent with the Multi-Year Tariff Order. He indicated that the electricity distribution business has transitioned to a new pricing regime effective January 1, 2023, which he confirmed on his meter by purchasing units.

When he confirmed the hike, Obonga pointed out that although it follows the guidelines set out in the Multi-Year Tariff Order 2020, there have been other arbitrary increases that have been different from it. NERC Chairman Sanusi Garba also noted during a media conference that adjustments would be made to the rate every six months to monitor and manage the foreign currency component of expenses and inflation. Even still, he cautioned that with the naira’s continuous depreciation, the rate adjustment might not represent an increase.

Nigerians are concerned about the economy and privatization.

Similarly, power distribution companies in the country have also justified the recent increases as a necessary effect to ensure the electricity industry is in optimal operation, reflecting the current economic realities in the country. Meanwhile, Nigerians are concerned about the country’s deteriorating economy and the privatization of the electricity distribution business. The power distribution is believed to have deteriorated since the privatization of energy distribution, prompting calls for the government to revert to the power sector privatization.


Related Link

NERC: Website

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Admin
1
23 days ago

Customers stand against the power rate hike – The electricity tariff has increased to N72.2 per unit from the previous N66. – Express your point of view.

Abusi
Member
8
23 days ago

I don’t understand how electricity tariff increases when the rate of supply is still so bad. We continue to pay levies and taxes for social services that we are not enjoying. The government is just exploiting it’s citizens.

Member
8
23 days ago

The hike in the rate of electricity is uncalled for since the service render is very poor. An increase from ₦66 to ₦72.2 per unit is not justified. Since the inception of the 4th republic each administration has invested heavily in power but yielded no result. Please, every cabals preventing regular supply of electricity should hands off . They should stop sabotaging the effort of the government.

Member
8
23 days ago

Electrical consumers from all around the country have united in their opposition to the stealthy and unannounced increase in power rates that has been implemented by the nation’s electricity distribution firms.

Member
8
23 days ago

During the same time period, a number of other citizens voiced their worries with the manner in which the firms that distribute electricity did not tell the general public prior to increasing the prices of power.

Member
8
23 days ago

Why should there be an increments in tariff of electric power when there is no steady power supply. When we are not enjoying value for money. Besides the masses where not informed about the increment. This is of course not right.

Member
8
23 days ago

They need to make sure that the licensees’ rates are reasonable for consumers and give them enough money to cover their costs and make a profit.

Member
8
23 days ago

Following the establishment of a system for the determination of electricity rates in the Nigerian Electricity Supply Industry by the Commission, a tariff order was subsequently issued by the Commission.

Member
8
23 days ago

After a press conference, it was said that the rate would be changed every six months so that the foreign currency part of costs and inflation could be tracked and kept under control.

Member
8
23 days ago

Why increase electric power tariffs when power supply is unreliable? When we don’t get our money’s worth. Additionally, the public wasn’t informed. It’s wrong.

Member
8
23 days ago

Rates charged by licensees must be fair to customers and provide adequate revenue for the businesses to break even.

Member
8
23 days ago

The objective is to arrive at rates that are reflective of actual costs in order to guarantee that the power industry has access to the resources it needs to function efficiently.

Member
8
23 days ago

At the same time, other residents aired their concerns about how electricity distributors did not notify the public before raising power costs.

Member
9
23 days ago

The increase in our electricity tariff is just excruciating coupled with the epileptic power supply,our government are just toiling with us and we keep paying the price for their mistakes.

Member
8
23 days ago

Even when we are not receiving the benefits of the social services for which we are paying taxes and levies, the government continues to take advantage of its constituents.

Member
8
23 days ago

This is getting too much for the power distribution companies. How can they be so heartless to increase the power rate giving an order as excuse. They hard time we are going through because of the economy is enough.

Member
8
23 days ago

The manner in which the firms that distribute electricity did not tell the general public prior to increasing the prices of power is not justified. The need to make sure that the licenses’ rates are reasonable for consumers and give them enough money to cover their costs and make a profit would be appreciated!

Member
8
23 days ago

Why should the price of electricity increase when there is an unstable supply of power? whenever we do not receive value for our money. In addition, the general public was unaware of the increase. This is wrong.

Member
8
22 days ago

Why should there be increase in electricity tariffs without corresponding improvement in electricity supply. Where’s the sense in that

Member
8
22 days ago

Why is electricity tariff is getting increase some are having difficult to pay now it as increase more and the electricity is not that stable and we are paying money for which we are not enjoy well

Member
9
22 days ago

Customers stand against the power rate hike. Electricity in Nigeria is so bad. I wonder where the increase in electricity is when the country is suffering poor supply

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