The Peoples Democratic Party (PDP) has kicked against the New Year ‘gift’ of hike in electricity tariff as approved by the President Muhammadu Buhari-led Federal Government, saying the new tariff should be jettisoned with immediate effect.
The party described the hike in electricity tariff from N2 to N4 per kWhr, as announced by the National Electricity Regulatory Commission (NERC), as “insensitive, anti-people which will worsen the economic hardship being faced by Nigerians at this time.”
The PDP’s reaction to the fresh electricity tariff was contained in a statement issued by its spokesman, Kola Ologbondiyan, yesterday.
“The party contends that the reasons adduced by NERC are not enough to warrant such an increase in electricity tariff, especially at the time Nigerians are looking up to the government for economic recovery programmes and packages,” he said.
The PDP urged the APC and its government to note that such an electricity tariff hike, at this critical time, “will bear more pressure on homes and businesses, impact negatively on our national productivity and make life more unbearable, particularly at this period of insufferable economic recession.”
Also reacting, the Nigerian Labour Congress (NLC), yesterday, said it would use every available means to resist the new increase in the electricity tariff.
The NLC also accused the Federal Government of deceit and insensitivity to the plight of Nigerians at this period the Coronavirus pandemic has caused havoc to the people, adding that if the action of the government was not resisted, exploitation in the country would have no end.
President of the Congress, Comrade Ayuba Wabba, who reacted to the sudden hike in electricity tariff, said that it would have a toll on manufacturers in the country which would, in turn, lead to job loss.
He said, “This is not only condemnable but I think there is some element of deceit in it because there is a standing committee of the Federal Government which the electricity regulatory commission is part of it still working on how to be able to address the issue of electricity hike arising from the last hike which labour intervened.
“Most of the members are not even aware of this current increase. Basically, we are going to resist it and Nigerians must also stand up to resist it because it’s like exploitation it means that this exploitation will not have an end and when you look at the variable it is even laughable.
“Most of our manufacturers both small and medium scale will not be able to afford all of this, they have been crying and the implication is that there will be some lay off because people will now resort to importation, most of these small and medium-term enterprises will resort to importation instead of producing here at home.
Accusing the government of insensitivity, Wabba further said, “We have statistics of countries that have actually assisted to make sure that electricity tariff is even suspended for some time and there have not been any increase.
Earlier, the management of the Nigerian Electricity Regulatory Commission (NERC) says there is no 50 percent increase in electricity tariff.
This was made known by NERC’s Head of Public Affairs, Mr Micheal Faloseyi, in a statement in Abuja, yesterday.
Faloseyi spoke against the backdrop in some quarters that electricity tariff had been increased by 50 per cent.
He said: “The commission hereby states unequivocally that no approval has been granted for 50 per cent tariff increase in the tariff order for Electricity Distribution Companies (DISCOs) which took effect from January 1, 2021.
“On the contrary, the tariff for customers on Service Bands D and E (customers being served less than an average of 12 hours of supply per day for a period of one month) remains frozen and subsidised in line with the policy direction of the Federal Government.
“In compliance with the Electric Power Sector Reforms Acts (EPRSA) and the nation’s tariff methodology for biannual review, the rates for Service Bands A, B, C, D and E have been adjusted by N2.00 to N4.00 per kWhr to reflect the partial impact of inflation and movement in foreign exchange rates,” he said.
Faloseyi said that the commission remains committed to protecting electricity consumers from failure to deliver on committed service levels under the service-based tariff regime.
According to him, any customer that has been impacted by any rate increase beyond the above provision of the tariff order should report to the commission at: customer.complaints@nerc.gov.ng.
It would recalled that the Nigerian Electricity Regulatory Commission (NERC) had approved a revised tariff regime beginning January 1,2021.
NERC’s revised Multi Year Tariff Order signed by its new Chairman, Engr. Sanusi Garba, on December 30, 2020, said the new tariff increase took effect on January 1, 2021, and supersedes the previous order, NERC/2028/2020.
The commission said it considered the 14.9% inflation rate rise in November 2020, in its new order, NERC/225/2020.
Others that necessitated its decision are foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22% and the Capital Expenditure of the power firms to raise the tariff.
Confirming the increase, the Minister of State for Labour and Employment, Festus Keyamo, said the Federal Government didn’t increase electricity tariffs but adjusted some bands for users to pay what they are supposed to pay.
The minister stated this, yesterday night while featuring on Channels Television’s Politics Today programme monitored by The Tide in Port Harcourt,
He said the Nigerian Electricity Regulatory Commission did not consult him or other members of the committee working on the new electricity tariffs regime before the announcement, yesterday.
“There has been no increase in tariff. What we agreed to do was to freeze certain bands. You know we have bands A, B, C, D, and so on and so forth. So, in the interim, what we did was to adjust certain bands and to ensure that certain persons who are supposed to be on some bands are not wrongly put on some other bands.
“What has just been done is adjustment of certain bands but there has not been any increase in tariffs.”