Tag: Electricity tariff hike

  • Electricity tariff hike: NBA threatens lawsuit against Discos

    Electricity tariff hike: NBA threatens lawsuit against Discos

    The Nigerian Bar Association (NBA), Ikeja Branch, has given the Federal Government and Electricity Distribution Companies (Discos) a seven-day ultimatum to reverse to the old electricity tariff or face a lawsuit.

    The chairman of the branch, Mr Seyi Olawunmi, said this at a news conference on Tuesday in Lagos.

    Olawunmi described the increase in the electricity tariff by almost 300 per cent as not only unreasonable but also insensitive.

    He said the National Electric Regulation Commission (NERC) order in respect to the tariff hike was not in line with the current economic realities of an average Nigerian.

    He said the branch would seek appropriate remedies in the court if the Federal Government and concerned individuals failed to reverse the illegal electricity tariffs within seven days.

    Olawunmi noted that NERC in December 2023, issued a new Multi-Year Tariff Order (MYTO 2024) which indicated a purported cost-reflective tariff chargeable by the various Discos.

    He explained that large chuck of the electricity tariff was reportedly absorbed by the Federal Government under a subsidy arrangement.

    The chairman said that the purported subsidy had reportedly been removed by the Federal Government, leading to an over 300 per cent increase in the electricity tariff payable by the end-user.

    “We view this sudden astronomical increase in the end-user tariff irrespective of the technical arguments preferred in justification, as utterly exploitative and non-reflective of the current economic hardship that the masses are going through.

    “The inflation and the depreciation of the Naira has affected their services that it is practically impossible to remain on the old tariff and electricity in Nigeria is not well priced.

    “We, therefore, demand immediate stop to the illegal implementation of the N225 per kWh imposed on the so called band A customers at the discretion of both the Discos and NERC without any empirical basis.

    “The classification into band A or B or C or D or E should be scrapped and it is either the Discos are guaranteeing 24 hours supply for all or they are not.”

    Olawunmi said the government and the Nigerian people can not continue to subsidise their inefficiency in the name of band A or B or C etc.

    “If the government fails to reverse the illegal hike within seven days, we will be left with no choice than to seek appropriate remedies in the court of law,” the NBA Chairman said.

  • Atiku knocks Tinubu over hike in electricity tariff

    Atiku knocks Tinubu over hike in electricity tariff

    Atiku Abubakar, the 2023 presidential candidate of the Peoples Democratic Party, (PDP) has said that the increase in electricity tariff will create more difficulties for Nigerians.

    Atiku made his points known by taking to platform X on Friday evening.

    In his post, Atiku said the Federal Government was unleashing another dose of reforms without adequate notice and without an adequate post-reform plan to mitigate the pain.

    His words reads: “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.

    “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. 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 privatisation exercise that produced the DISCOs.”

    The former Vice President also listed things Tinubu must do following the hike in electricity tariffs.

    “Tinubu must (a) ensure that these reforms are sequenced, (b) implement measures to mitigate the pain, and (c) hold the NERC responsible for ensuring improved service delivery,” he wrote.

  • NERC orders DisCos to suspend electricity tariff hike

    NERC orders DisCos to suspend electricity tariff hike

    The Nigerian Electricity Regulatory Commission (NERC) has ordered the 11 Electricity Distribution Companies (DISCOs) to suspend the Sept. 1 tariff increase for 14 days.

    The suspension is in line with the agreement reached with the organised Labour on the suspension of strike over the hike in electricity tariff and increase in pump price of petrol.

    The commission’s suspension order of the Multi-Year Tariff Order (MYTO) 2020 signed by Prof James Momoh, NERC’s Chairman was released on its website on Wednesday.

    The Federal Government agreed that the recent review in electricity tariffs would be suspended by the commission for a period of 14 days to further consultations and finalization of negotiations between the parties.

    The order by NERC said that from Sept 28 to Oct 11 the DisCos must revert all charges to the tariff existing as of Aug 31.

    “This means that for the next two weeks, electricity consumers having power above 12 hours who were affected by the over 100 percent tariff hike would revert to their old charges.

    It said as empowered by Section 33 of the Electric Power Sector Reform Act, EPSRA 2005, the Minister of Power, Sale Mamman can issue such directive to NERC.

    The Secretary to the Government of the Federation, Boss Mustapha, and Mamman were among the team that met with the labour unions.