Electricity Tariffs: NERC, DisCos Disregard Consumers

Recent media reports indicate that electricity distribution companies (DisCos) in Nigeria have quietly increased tariffs payable by power consumers.

Nigeria’s minister of state for power, Goddy Jedy-Agba has reportedly refused to confirm an electricity tariff increase that reportedly occurred in the last quarter of 2022.

This increase in tariffs is said to be silent because there was no prior information on it from the electricity firms or the Nigerian Electricity Regulatory Commission (NERC).

As a result of this, citizens have reportedly lamented the increase amidst the current harsh economic realities in Nigeria.

Development Diaries learnt that electricity tariffs were increased across DisCos in the country around mid-December 2022.

The review order of Abuja DisCo shows that NERC issued the adjustments to power tariffs on 28 November and directed DisCos to implement the changes from the start of December 2022.

The breakdown of the new tariff payment as reported by Nairametrics are as follows: Band A customers are now to pay N81.18 per kilowatt hour (kW/h) from N66.95, while Band B customers will now pay between N63.35 and N76.15 per kW/h.

The tariff breakdown indicated no change from the previous tariff order that was active between July and November 2022 for Band C, D and E customers.

Gap in communication

A look at the official website of NERC shows that there was no press statement to inform the public about the increase in tariff ahead of this move.

Also, the Minister of State for Power, Goddy Jedy-Agba, during a public hearing organised by the House of Representatives Committee on Power, reportedly refused to confirm the electricity tariff increase.

The NERC performs its operations based on the guidelines stipulated in the Electric Power Sector Reform Act 2005.

Based on this Act, section 32 mandates the commission to ‘establish appropriate consumer rights and obligations regarding the provision and use of electric services’.

According to the rights and obligations of electric power consumers in Nigeria, as outlined by NERC, all power consumers have a right to be properly informed and educated on the electricity service.

To this end, the commission has defaulted on its responsibility by failing to inform Nigerians (consumers) of an increase in electricity tariff before implementing this increase.

Call to action

NERC needs to clearly state who gave the distribution companies the go-ahead to effect an increase in electricity tariff as they would not do so without instruction from a regulatory body.

Also, the Minister of Power and Steel, Goddy Jedy-Agba, has to answer questions concerning happenings in the power ministry. Nigerians deserve to know why they have to bear the burden of a consistent increase in electricity tariffs.

Photo source: Sho photography

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