https://thestreetjournal.org/consumers-fume-as-electricity-distribution-companies-secretly-increase-tariff-nationwide/

Electricity distribution companies (Discos) have secretly increased the tariff payable by power consumers across the country.

Although most of the Discos did not make this public, electricity users have kicked against the move, describing it as “a perfect robbery” amidst the harsh economic realities in Nigeria currently.

A resident of a Lagos highbrow estate, Oye Sola, while reacting to the price hike, said that, “Electricity tariff is now N72.2 per unit. Another price hike from N66. I suspect they are going to N100. A higher price for poorer services.”

Another customer of Ikeja Disco identified as Ola Busari said that, “They are just milking us. This is a perfect robbery. Discos need to be checked.”

Another Lagos resident named Olojede, while speaking on Wednesday, January 4, said that, “They increased prices without informing us. There was no official communication to us whatsoever.”

However, the Nigerian Electricity Regulatory Commission (NERC), in its multi-year tariff order, provides a 15-year tariff path for the Nigeria Electricity Supply Industry (NESI) with limited minor reviews each year.

It states that reviews are in the light of changes in a limited number of parameters such as inflation, interest rates, exchange rates and generation capacity, and major reviews every five years when all of the inputs were reviewed with the stakeholders.

NERC, however, did not announce the latest hike in tariff, which a power distribution company attributed to the regulator on Wednesday.

A Twitter user, Oyibo Ediri, on Wednesday, accused the Abuja Electricity Distribution Company (AEDC) of secretly increasing the tariff in December, alleging that the firm raised the rate for non-maximum demand customers by N12.65, The Punch reports.

The Twitter user stated that, “AEDC has quietly increased the cost of electricity. Cost increased from N57.55 in December to N68.2 for tariff.

“There was no official statement from @aedcelectricity or @NERCNG on the increase. These people won’t stop to fleece us.”

The AEDC, while replying to the tweet, via its official Twitter handle, @aedcelectricity, explained that the tariff hike was based on the order of NERC.

“Good day, please be informed that the increase in Tariff is in compliance with NERC order,” the Disco stated.

Also, a Twitter user, while reacting to the response of AEDC, asked the power firm to provide the current rates approved by the NERC.

“Kindly make the current rates available as ordered by @NERCNG. Thank you,” the Twitter user stated.

Another Twitter user, Justin David, who reacted to the request by Ediri, then said that, “We await your response @aedcelectricity.”

However, the Disco did not make any further comment nor did it reply to the requests of the power consumers.

The response could not be obtained from the power regulator as of Wednesday.

Meanwhile, on NERC’s website, the commission explained that one of its primary functions as contained in section 32 (d) of the electric power sector reform act, 2005, was to ensure that the prices charged were fair to customers.

NERC stated that, “In pursuant to the authority given under section 76 of the EPSR act 2005, the commission established a methodology for determining electricity tariff in NESI and subsequently issued a tariff order called the multi-year tariff order (MYTO) that sets out tariffs for the generation, transmission and distribution of electricity in Nigeria.

“The purpose of the MYTO is to set cost-reflective tariffs which will allow the power sector to be properly funded and functional.

“It provides a 15-year tariff path for the NESI with limited minor reviews each year in the light of changes in a limited number of parameters (such as inflation, interest rates, exchange rates and generation capacity) and major reviews every five years, when all of the inputs are reviewed with the stakeholders.”

The national secretary, Nigeria Electricity Consumer Advocacy Network (NECAN), Uket Obonga, while speaking on Wednesday, confirmed the increase in tariff, but stated that it was in line with the MYTO.

He said that, “They (Discos) are transiting to the new tariff policy that takes effect from January. On January 1 this year, around 4 pm, I had over 300 units in my meter, but to confirm whether there is an increment, I had to buy some units online.

“I bought units of N2,000, which is supposed to be about 26 or 27 units, but what I saw there was about 21 units, which is confirmation that there is a tariff increase according to the current MYTO.

“They moved into a new tariff policy on January 1. But there have been other arbitrary increments outside the MYTO policy.

“However, the one that took effect now is based on the MYTO, as captured in the MYTO 2020 order.”

Don't be surprised most of the people who complained bitterly campaigned for APC.

Let us all enjoy the hardship.