Business
Body Decries Electricity Tariff Hike In Aba
The Aba Industrialists
Association (AIA) has decried the recent tariff hike by the Enugu Electricity Distribution Company (EEDC).
In a communique issued after the Association’s meeting held in Aba on Friday and signed by Chief Emmanuel Obi and Mr. Ehisianya Christian, Chairman and Secretary of the Association respectively said if the tariff hike is not reversed, industries in the city of Aba may be shut down forthwith.
The Association said with the new price regime as announced by EEDC recently, unit cost of electricity was increased by over 100 percent, stressing that with the new energy tariff, a company which paid N900,000 in December last year would be made to pay N2.4 million by end of February 2015.
The Industrialists said that despite the over 100 percent increase in tariff, power supply has been declining in the city of Aba prompting many of the Association members to depend more on generators energy for their industries production even when they were expected to pay heavily by EEDC.
The Assocation’s communiqué said that the new tariff is outside the purview of the N104,000 the company referred to as fixed charge which the industrialists are to pay every month whether there is power supply or not.
AIA said the new tar if allowed to stand would force many of its members out of business, stressing that the cost of finished products would also not only be very high but put indigenous manufacturers out of competition.
The communigue added that a situation where a Small and Medium Scale Enterprise would be made to pay N16 million as electricity bill in a month is worrisome, stressing that there is no way such a company will remain in business.
The Association called upon the federal government through the Nigeria Electricity Regulatory Commission (NERC) to intervene.
Philip Okparaji