Nigerians Reject NERC’s Tariff Reduction
Nigerians across various sectors vehemently reject the Nigerian Electricity Regulatory Commission’s (NERC) reduction of tariff for Band A customers from N225/kWh to N206.8/kWh. A multitude of stakeholders, including the Nigeria Labour Congress, Trade Union Congress, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, as well as electricity consumers and civil society organizations, have collectively demanded a complete rollback of the tariff hike, advocating for a return to the subsidy era tariff.
Background: Recent Tariff Fluctuations
This tariff reduction comes a mere 33 days after NERC significantly raised electricity tariffs for Band A customers by approximately 240 per cent, completely removing subsidies from this category, which constitutes about 15 per cent of the total 12.82 million power consumers nationwide. Despite the government’s assertions that the tariff increase would save N1.5 trillion and guarantee up to 20 hours of daily power supply for Band A customers, strong opposition persists from the House of Representatives, organized labor, and the Nigerian Bar Association.
Government’s Defense and Public Response
Minister of Power Adebayo Adelabu stood firm, warning of a potential nationwide blackout within three months without the tariff hike. Florence Eke, the power ministry’s spokesperson, echoed the government’s stance, insisting the new tariff was non-negotiable. Public pressure for reversal was rebuffed by Eke, asserting the necessity of the tariff hike. Adelabu’s cautionary words underscored the seriousness of the situation, emphasizing the critical importance of the tariff increase.
Tariff Reduction Announcement
However, in an unexpected twist, NERC announced an eight per cent reduction in tariff for Band A customers, citing changes in macroeconomic indices, notably the appreciation of the naira against the dollar. In response, electricity distribution companies such as Ikeja, Ibadan, and Abuja complied with the directive, promptly slashing tariffs in accordance.
Stakeholder Dissatisfaction and Calls for Comprehensive Solutions
NERC underscored its dedication to upholding a regulatory environment that balances consumer interests with industry sustainability. Regulators depicted the tariff reduction as part of ongoing efforts to ensure electricity affordability while distribution companies foster efficiency and enhance services.
Despite the tariff reduction, various stakeholders expressed dissatisfaction, insisting on a complete reversal.
Stakeholders expressed concerns about recent tariff increases, stressing the need for engaging stakeholders and reforming the power sector. Calls for comprehensive solutions emerged, highlighting energy challenges and economic crises beyond tariff reductions. Advocates argued for addressing underlying issues effectively.
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