……as Nigerians react to new electricity tariff
By Ife Osemedua
Deputy President of the Nigeria Labour Congress (NLC) and General Secretary of National Union of Electricity Employees (NUEE), Joe Ajaero, has accused the government of colluding with Electricity operators to exploit Nigerians.
Ajaero was reacting to Tuesday’s approval of a hike in electricity tariff payable by customers of the 11 Distribution Companies, DisCos by the Nigerian Electricity Regulatory Commission (NERC).
The Multi Year Tariff Order (MYTO) signed by the new Chairman of NERC, Sanusi Garba, on December 30, 2020, showed that the new tariff increase took effect on January 1, 2021, barely two months after the implementation of the controversial hike proposed last year.
The increment was predicated on ”14.9% inflation rate rise in November 2020, foreign exchange of N379.4/$1 as of December 29, 2020, available generation capacity, US inflation rate of 1.22% and the Capital Expenditure (CAPEX) of the power firms to raise the tariff,” according to the NERC.
Speaking on Channels TV’s Sunrise Daily Show on Wednesday, Ajaero said Nigerians do not have a representative in the Nigerian Electricity Regulatory Commission (NERC), leading to decisions taken against their interest.
“Wherever the operator and the regulatory commission are united, wherever you have regulatory hijack by the operators, the country will always suffer. In the NERC, who represents the ordinary man?,” he queried.
Already, the Nigeria Labour Congress, NLC, has expressed the same opinion. While rejecting the new hike in electricity tariff by the Federal Government, it noted that NERC was conniving with electricity providers against Nigerians and undermining the system and ongoing negotiations.
The President of NLC, Ayuba Wabba, stressed that Organised Labour would resist the new hike, as it would kill businesses and worsen the poverty line across the country.
“This is not only condemnable, but there is an element of deceit in it because there is a standing committee of the Federal Government, which the Nigeria Electricity Regulatory Commission, NERC, is part of, still working on how to address the issue arising from the last electricity tariff hike.
“Most of the committee 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. It is like exploitation and it means that this exploitation will not have an end,” he stated.
Furthermore, he added, “When you look at the variables, it is even laughable. You are looking at the variable of inflation and the variable of the exchange rate which is supposed to be the responsibility of government to fix.
“I am sure that most of our manufacturers, both small and medium scale will not be able to afford all these.
“They have been crying and the implication is also that there would be some layoffs because people will now resort to importation.
“Certainly, it will further impoverish Nigerians especially workers. Currently, we are under the yoke of paying excessive charges over all services, and on this important commodity, is the worse off.
“It is really unfortunate also because. In many climes, governments are subsidising power because of the impact of COVID-19 on businesses, health and the world of work— including African countries. I have said time without number that Nigeria Electricity Regulatory Commission, NERC, is conniving with the service providers instead of siding with customers.
“Even the very important laws that are put in place to guide against such arbitrary increases have not been respected. You also remember that establishments including very critical infrastructures, hospitals and the media houses have complained about the previous hike because it is not affordable. Doing this without even consultations means that there is intent to undermine the system. So, this is very worrisome and that is why I think it has to be condemned.”
Nigerians have been expressing dismay over the new development, especially as many were yet to settle from the impact of the November increase on food prices and other basic commodities.
Some resident’s in Anambra’s capital city, Awka, said to the News Agency of Nigeria that the increase would affect the living standard of the people in the negative.
For Mr Marcel Ofor, the increase at the beginning of the year when lots of spending had been made was insensitive to the hardship it would attract to the people.
He added that welfare of the people should be in the mind of policy makers at all times so as not to create chaotic situations in lives of the citizens.
Similarly, Mrs Betty Enekwechi, a teacher, said: “We just entered the year after the festive era, we are faced with house rent, school fees home maintenance and restocking. The timing is wrong,” she said
Enekwechi said that the government should consider increase in salaries of the people so as to make life bearable for the citizens.
Mr Chiadi Anatune, another respondent, said it was surprising that after the September 2020 opposition to the raised electricity tariff, the government could not reason with the people to not take a decision that would be harsh on the people’s standard of living.
“Everybody needs light to at least enjoy a comfortable living, do businesses, amongst other living activities. Government should encourage the poor to live,” he said.
However, Mr Chibuikem Okeke commended the Federal Government in its efforts to supply constant electricity to the people and urged the public to see that it is for the common good.
The increase on electricity tariff varies and is based on different consumer classes, and the increase took effect from Jan. 1, 2021.
NERC had announced the 50 per cent tariff hike in its December 2020 minor review of the Multi-Year Tariff Order and Minimum Remittance Order excluding only consumers receiving for the lowest supply hour per day.
NAN reports that the commission also stated that the new tariff would be effective until June while a Cost Reflective Tariff would be activated from June to December 2021.
Also the commission had stated in December 2020 that it was carrying out a review for another tariff, hence the latest order announcing an increase in the rates payable by consumers.