From Isaac Anumihe, Abuja
Again, the distribution companies have announced an upward review of electricity tariff for customers on Band A feeders from N206.80 per kilowatt hour to N209.5 per kilowatt hour (/kWh) in accordance with the Multi-Year Tariff Order (MYTO).
This is less than three months after the tariff was increased from N66 per kilowatt to N225 per kilowatt.
In May, the tariff went up from N225 kilowatts to N206.80 per kilowatt. Similarly, in June the DisCos jerked it up to N206.80 kw/h.
The management of Kaduna Electric was the first DisCo to announce its own upward review this month.
In a statement, Head, Corporate Communication, Kaduna Electric, Abdullazeez Abdullahi said that the tariff is effective July 1, 2024 and affects both prepaid and post-paid customers. He, however, assured customers on its Band A feeders of its continued availability of 20-24 hours of electricity supply daily as stipulated in the service-based tariff regime.
Abdullahi noted that the tariff for Bands B,C,D and E remains unchanged.
“The management of Kaduna Electric informs the public of an upward review of tariff for Band A feeders from N206.80/ kwh to N209.5/kwh.
“The review is effective from July 1, 2024 and affects both prepaid and post-paid customers.
Kaduna Electric assures customers on its Band A feeders of its continued availability of 20-24 hours of electricity supply daily as stipulated in the service-based tariff regime” he said.
Confirming the increase, a highly-placed official of Nigerian Electricity Regulatory Commission (NERC) said that DisCos cannot implement any review without the approval of NERC. He said that it is a monthly review and the hike is for the month of July.
Irked by the increase, President, Electricity Consumer Protection Advocacy Centre (ECPAC), Princewill Okorie queried the powers the DisCos have to increase tariff saying that it’s a violation of Electricity Act, Section 116.
“Where are they (DisCos) drawing their powers to increase tariff arbitrarily from? Section 116 of the Electricity Act never gave them the powers to increase tariff without due consultation. So, how are they doing it? There are violations because the rights of the consumers are provided in the act. These rights are violated with impunity and nothing happens to them.
” Have they finished implementing the former Multi Year Tariff Order (MYTO)?. We are talking about tariff, what about some unlawful collections in billing? Where is meter acquisition fund? Is it not the same consumers that are buying the meters? Have they refunded those who paid for meters under Meter Acquisition Fund? The Meter Acquisition Fund and Meter Access Provider. The money they are collecting under Meter Acquisition Fund, have they accounted for it? The same consumer that is paying Meter Acquisition Fund, the same consumer that is buying the meter, the same consumer that is being made to pay a certain percentage of Meter Acquisition Fund, the same consumer that is paying back the loan the consumer never benefited from. Now, who is asking questions about their capital expenditure (capex) and operating expenditure (opex)? How much opex has Nigerian Electricity Regulatory Commission (NERC) been approving for them every year?. So, these questions should be going to the legislature. Why are they keeping quiet?.
Recall that in April, when the commission approved over 200 per cent hike in electricity tariff for Band A customers from N66/per kWh to N225/kWh citing increased foreign exchange rate from N919/$ to N1,463, the nation went agog, so forcing the Minister of Power, Chief Adelabu Adelabu to say that the increase was meant for the privileged class.
“In fact, some customers had been downgraded from Band A to Band B due to the fact that the distribution companies have not provided the required hours of electricity.
“We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent now qualify as Band A feeders. These feeders only service 15 per cent of total electricity customers connected to the feeders.
“The commission has issued an order which is titled ‘April Supplementary Order’ and the commission allows a 225 kilowatts per hour”the Minister said, noting that the review will not affect customers on Band C, D and E who receive less hours of electricity per day
But since then, the tariff has been increased more than two times.
