ActionAid Condemns Hike In Electricity Tariff

A non governmental organization “ActionAid Nigeria, AAN, has strongly condemned the recent approval by the Nigerian Electricity Regulatory Commission, NERC, to increase electricity tariffs for customers under the Band A classification.

This is contained in a statement signed by the Communications Coordinator, ActionAid Nigeria, Oluwakemi Akinremi-Segun in Abuja.

The statement says this decision comes at a time when the country is grappling with erratic power supply, leaving millions of citizens in darkness and exacerbating the already dire economic situation faced by many.

“The increment for customers under Band A is not only unjustifiable but also insensitive to the plight of ordinary Nigerians and businesses within the band, especially SMEs”

According to the statement, the Country Director of ActionAid Nigeria, Andrew Mamedu, says It is outrageous that amidst the prevailing power crisis, the commission would choose to burden consumers with exorbitant tariffs, further deepening the economic hardship faced by millions of households.

“We view the increase as unjustified and a reward for the gross incompetence of the players in the power sector who have subjected Nigerians to more darkness in recent months than at any other time in history” Mr. Mamedu emphasises.

“Customers under Band A, who are supposedly entitled to 20 hours of electricity supply daily, are left in the dark both figuratively and literally as power outages continue to plague the nation”.

The statement states that NERC’s decision to downgrade certain customers from band A to band B due to purported non-compliance with the stipulated hours of electricity provision by distribution companies, without an inherent plan for monitoring the DISCOs and holding them accountable for fulfilling their obligations, is absurd.

According to the statement the National Bureau of Statistics report indicates that over 133 million Nigerians are multidimensionally poor and unable to afford basic amenities.

“Following the removal of fuel subsidy and the floating of the Naira, there has been untold hardship precipitating the cost-of-living crisis, which has pushed more Nigerians to the poverty threshold. It is disheartening to see different government parastatals hiding behind the guise of subsidy removal to justify unjustifiable tariff increases” he stresses.

“This pattern of opacity only serves to erode public confidence in the government’s ability to govern effectively and fairly. It is important to note that energy security is one of the major areas that contributes to national security and welfare, which explains why nations are always focused on ensuring its availability and affordability”.

“While the government of Canada for example, is currently providing up to 100 Canadian Dollars to subsidise energy tariffs for homes amid economic hardship, NERC, on the other hand, has chosen to burden the citizenry with an increment.’’

The statement demands transparency from NERC regarding the breakdown of the subsidy, noting that the lack of clarity surrounding the issue is deeply troubling.

“We have written NERC that it is essential for consumers to understand what exactly was being subsidised before, as well as the specific areas or aspects of electricity provision that the subsidy covered. Without this information, consumers are left in the dark about how their payments were allocated and whether they were receiving fair value for their money” he adds.

The statement urges NERC to immediately reconsider its decision and prioritise the interests of the Nigerian people above all rather than burdening citizens and business owners with increased tariffs.

It calls on the commission to address the systemic issues plaguing the power sector, including inadequate infrastructure, poor maintenance, and lack of transparency stressing that as a public enterprise funded by taxpayers’ money, what indices did NERC employ in arriving at the new prices per kWh? And with whom were consultations made, including which stakeholders, before arriving at this decision?

By Georgina Humphrey