Nigerians, the organised labour, Civil Society Organisations and energy sector specialists have knocked the Nigerian Federal Authorities and Nigerian Electrical energy Regulatory Fee, NERC, over the N18 downward assessment of electrical energy tariff for end-users underneath Band A.
DAILY POST reviews that NERC introduced a tariff lower for purchasers underneath Band A feeders on Monday.
The Fee slashed electrical energy to N200.6 per Kilowatt-hour from N225.
Ikeja Electrical, Abuja, Kaduna, Ibadan, Enugu, and different discos effected the brand new tariff implementation on Monday.
The event comes a month after NERC accredited a 240 per cent tariff hike for electrical energy prospects getting between 20-24 hours of provide.
Nevertheless, Nigerians, organised labour and different organisations have kicked in opposition to the hike, insisting on its reversal amid Nigeria’s financial hardship.
Recall that on Sunday, TUC issued a two-week ultimatum to NERC to reverse April tariff hike.
However, opposite to Nigerians and Organized Labour’s demand for a direct electrical energy hike reversal, NERC settled for a downward tariff assessment.
NERC sighted accredited macroeconomic parameters as the rationale for the downward assessment.
The Naira appreciated N1353.21 per Greenback on Monday on the international alternate market, up from N1400.4 on Friday final week.
Explaining the choice, NERC mentioned, “The Fee has thought of adjustments within the macroeconomic parameters over the previous month of April 2024 and particularly the appreciation of alternate charges – consequently, the Fee has accredited a downward assessment of end-user tariffs for Band “A” prospects from NGN225/kWh to NGN206.8/kWh”.
Barr Dafe Akpeneye, Commissioner of Authorized, Licensing and Compliance at NERC, harassed that, “It’s primarily based on different macroeconomic variables that the tariff was diminished”.
In the meantime, the event didn’t go down nicely with NLC, Civil Society Organisations and plenty of different Nigerians.
They described the discount as foolish, insignificant, tokenism, and shallow.
In an unique interview with DAILY POST on Monday, Benson Upah, the spokesperson of NLC, described the event as tokenism, stressing that it might not positively affect customers.
He mentioned the downward assessment of electrical energy for end-users underneath Band A fell wanting Nigerian staff’ calls for and expectations.
He known as for a complete reversal of April’s tariff hike and a assessment of Nigeria’s energy sector privatisation.
“That is tokenistic. It falls far beneath our demand or expectations. Uncertain if it will make a optimistic affect on customers.
“A complete reversal and a assessment of the privatisation of the ability sector is our demand”, he advised DAILY POST.
On his half, the nationwide secretary of the Community for Electrical energy Customers Advocacy of Nigeria, Uket Obonga, mentioned NERC was confused and was making a mockery of the sector.
“NERC is confused. You get up to subject electrical energy value hike. Is that the methodology of tariff fixing? NERC mustn’t mock themselves.
“A technique designed by the Fee has but to be adopted. All their claims about the good thing about electrical energy subsidy removing are scams,” he famous.
In response to the 2023 Electrical energy Act, Part 116(6) gives that the proposed tariff will probably be printed in Newspapers and the official gazette to allow stakeholders to lift issues and illustration to the Fee.
Moreover, it gives that the Fee shall subject discover to related stakeholders to submit their enter throughout the timeframe decided by the Fee for consideration earlier than the Fee updates the tariff methodology, which is why Obonga alleged that NERC didn’t comply with due course of in issuing Could’s tariff order.
Additionally, Ewetumo A A, a retired workers member of the defunct Energy Holding Firm of Nigeria, PHCN, previously the Nationwide Electrical Energy Authority, NEPA, mentioned the current assessment reveals how shallow and misdirected NERC personnel have turn out to be.
“It solely reveals how shallow and misdirected our bureaucrats and technocrats in NERC headquarters are.
“They refused to sentence a Gasoline-to-Energy Coverage denominated in US Greenback however are fast to move on to hapless Nigerians the Foreign exchange fluctuations.
“NERC has no feasibility research on Load Demand or a blueprint for constructing Energy Vegetation to satisfy residents’ power wants nationwide however solely to ration and value the little Megawatts remaining on the Grid”, he acknowledged.
Equally, the Lead Director of the Centre for Social Justice, Eze Onyekpere, mentioned the tariff discount is a foolish manoeuvre by NERC.
He urged for a reverse to standing earlier than April’s tariff hike.
“It’s a foolish manoeuvre. It’s above the market value of electrical energy. How sustainable is the Naira appreciation?
“If the Naira slumps tomorrow, will the tariff be elevated? That’s the reason I name it a foolish manoeuvre.
“They need to return to the established order. Nigerians ought to know the precise value of electrical energy. I’m not impressed”, he advised DAILY POST.
