Workers, Consumers Express Discontent Over ‘Negligible’ Electricity Tariff Reduction

The recent 8.1% reduction in electricity tariff paid by Band A customers has sparked mixed reactions from various stakeholders. While some see the cut as a step in the right direction, others, including the Trade Union Congress (TUC), electricity workers, and consumers, have described it as ‘negligible’ and are calling for a reversal of the tariff announced by the Nigeria Electricity Regulatory Commission (NERC).

TUC and Electricity Workers’ Stand

The TUC, representing senior workers, is adamant that the pre-April tariff of N66/kWh should be restored. They argue that there should not be any discrimination in electricity tariffs and have issued an ultimatum to NERC to revert to the old tariff while engaging with stakeholders in compliance with the Electricity Act. The National Union of Electricity Employees (NUEE) has also joined the call for a total reversal of the tariff for Band A customers, emphasizing the need for fair treatment of all electricity consumers.

Consumers’ Concerns

Consumers, under the Association for Public Policy Analysis (APPA), have expressed dissatisfaction with the new rate of N206.80/kWh. They question whether the reduction is significant enough to support industries or reduce the costs of goods. They have urged the government to reconsider its policy on gas and settle outstanding debts owed by its Ministries, Departments, and Agencies to the DisCos.

Proposed Solutions

The APPA chief recommends that the government should reverse its policy on gas and ensure that domestically produced gas is made available to power generating companies without being sold in dollars. This, he believes, will lead to a reduction in tariffs and support manufacturing industries. Additionally, he calls for a more consumer-oriented approach in decision-making within the power sector.

Response from NERC and DisCos

NERC attributes the tariff reduction to improvements in the exchange rate and other macroeconomic factors. The commission emphasizes its commitment to providing a balanced and effective regulatory regime in the Nigerian Electricity Supply Industry. The DisCos have promptly complied with the directive to reduce Band A tariffs, assuring customers of continued improvement in service delivery.

Conclusion

The discourse surrounding the electricity tariff cut sheds light on the intricacies and hurdles within Nigeria’s power sector. While some view the reduction positively, others believe more substantial changes are required to effectively support industries and consumers. As stakeholders continue to engage in discussions and negotiations, the overarching objective remains to ensure equitable, economical, and sustainable electricity supply for all.