Electricity tariff hike: NLC, TUC Picket NERC, DisCos offices today

If they keep their words, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) will today, picket the office of the Nigerian Electricity Regulatory Commission (NERC) and the distribution companies (DisCos)’s premises nationwide over the hike in electricity tariff. This is following a hike in the tariff for electricity consumers who enjoy at least 20 hours of daily power supply. “We write to inform you of the picketing action scheduled to take place in the offices of the NERC and Electricity Distribution companies (DISCOS) in all states, including the FCT,” the unions said in a joint statement by NLC’s Ag General Secretary Chris Uyot and his TUC counterpart Anka Hassan. “The action will jointly take place on Monday, 13th of May, 2024 nationwide simultaneously. “Therefore, the two Labour centres are directed to work together to carry out this important action. “While counting on your usual cooperation, kindly accept the assurances of our goodwill and highest regards.” Though the NERC had reviewed the tariff, the labour unions said they were picketing the agency’s office as well as the premises of distribution companies after a Sunday reversal deadline failed. The recent tariff hike for electricity consumers has continued to draw comments from several quarters. With inflation rising to new highs and Nigerians grappling with the removal of petroleum subsidy, the increase in tariff was met with stiff opposition. Human rights lawyer Femi Falana (SAN) had claimed that the Federal Government was raising funds for the “cash-strapped” DisCoS with the tariff hike. But while defending the move, the Minister of Power Adebayo Adelabu said the Federal Government will pay about N1.8trn in electricity subsidy in 2024. He argued that the Electricity Act, 2023 made provisions for the review of tariffs twice yearly. “Review of tariff is actually legal once it is within the exclusive responsibility of the Nigerian Electricity Regulatory Commission (NERC),” he said on an edition of Channels Television’s Politics Today. “The Act actually provides for review twice in a year, every six months,” he said. Following the clapback generated by the move, the House of Representatives asked NERC to suspend the implementation of the tariff hike.

Electricity tarrif : NLC, TUC insist on Sunday deadline to reverse hike

Nigeria Labour Congress(NLC) and Trade Union Congress of Nigeria(TUC) have given the Nigerian Electricity Regulatory Commission(NERC) till May 12 to withdraw the recent hike in electricity tariff or face unprecedented industrial action. The ultimatum was issued in a joint letter to the Chairman/Chief Executive Officer, CEO, was copied to the Secretary to the Government of the Federation, SGF, the Ministers of Labour and Power and the electricity distribution companies, DisCos, among others, Joe Ajaero and Festus Osifo, President of NLC and TUC respectively. The letter read: “This is to refer you to our May Day address where we expressed grave concerns regarding the recent announcement of an astronomical hike in electricity tariff across the nation from N65/kWh to N225/Kwh by your commission. ‘’We believe that this decision is not just morally reprehensible considering the difficulties Nigerians are faced with currently, but it blatantly disregards fundamental principles and statutory obligations. ‘’It is a slap in the face of justice and fairness, and we will not stand idly by as the masses and workers are subjected to such unacceptable exploitation. “As the regulator of the electricity sector, it is imperative that your commission grasps the weight of its responsibilities. NERC’s role entails the regulation of electricity tariffs in the country, a duty outlined in explicit detail within the statutes governing the commission. ‘’Yet, with this recent tariff hike which you have acquiesced, it is evident that the Commission has forsaken its duty and abandoned the people it was meant to protect to the fat cats in the electricity industry. “We are miffed that NERC has become a tacit collaborator in crafting the oppressive pricing regime being perpetuated against Nigerian workers and people. The Laws that set up the commission mandate it to act as an unbiased ombudsman in the electricity industry. ‘’Unfortunately, the reverse is the case as it has acted in cahoots with the Distribution Companies, DisCos and the Generating Companies, GenCos, to promote their nefarious market practices. “The announced tariff hike not only defies the established procedure mandated by law but also tramples upon the rights of Nigerian citizens. It is a flagrant abuse of power and a clear violation of the trust bestowed upon your commission by the Nigerian people. Such actions will not be tolerated, and we refuse to accept them as the new norm. “Nigerian workers and masses led by the Nigeria Labour Congress, NLC, and the Trade Union Congress of Nigeria, TUC, stand united in denouncing this injustice. We must defend the rights of our fellow citizens against exploitation. “Therefore, we demand an immediate reversal of the hike in electricity tariff to N65/kwh, immediate cessation of the discriminatory practice of segregating electricity consumers into arbitrary bands, and restoration of the supremacy of the statutes governing the conduct of operators within the electricity industry. “We give you until Sunday, May 12, 2024, to comply. Failure to do so will result in swift and decisive action on our part as we will not hesitate to mobilize our members and occupy all NERC’s offices and those of the DisCos nationwide until justice is served.”

Electricity Tarrif: Lawyer drags NERC, AEDC to court over implementing Band A to E classification …says action discriminatory

An Abuja based lawyer, Festus Sanmi Onifade, has asked the Federal High Court, Abuja, to restrain the Nigeria Electricity Regulatory Commission (NERC) and the Abuja Electricity Distribution Company (AEDC) from continuing with the implementation of multi-year tariff order 2024, which classified electricity consumers into Band A to E. Recall that NERC announced a new electricity tariff increase for customers in the Band A category from N66/kWh to N225kWh, that is, those enjoying 20-hour daily electricity supply. In the suit marked FHC/ABJ/CS/492/2024, the lawyer stated he sued for himself and on behalf of other consumers. In his affidavit in support of the originating summons dated April 16, 2024, Onifade contested the various power supply timelines set for residents in Nigeria. He insisted that a 20-hour power supply to Band A residents alone amounts to preferential treatment and discrimination of other Nigerians. He faulted the electricity price increment and downgrading, insisting that himself and other customers who are on B, C, D, and E are seeing their fundamental right to freedom from discrimination being breached by the development. He stated, “l am a legal practitioner practicing my trade in within the jurisdiction of the court and by virtue of my practice l am conversant with the 1999 Constitution of Federal Republic of Nigeria, the Electricity Act, 2023 and laws regulating the Review of Electricity supply in Nigeria and Consumer Rights in Nigeria. “That in addition to the above, I am a loyal Customer and Consumer of the product and services of the 2nd Defendant in Abuja with meter No. 04177493725 within the jurisdiction of this Honourable Court. “That on the 3rd April, 2024, the 1st Defendant introduced a policy of classification of the Claimant and other 2nd Defendant’s customers into band A, B, C,D, and E, and the said classification policy took immediate effect. “That by virtue of this classification, the 1st Defendant classified the 2nd Defendant’s Customers Iiving in the high brown urban areas of Maitama, Asokoro, Aso villa to Band A to enjoy electricity supply for 20 hours and above. “Similarly, by the same classification, the 1st Defendant classified the Claimant and other 2nd Defendant’s Customers living in less privileged areas to Band B, C D and E thereby consigning these categories of customers to a perpetual state of lower, limited electricity supply of 16 hours for customers on band B, 12 hours and above for Customers on Band C, 8 hours and above for Customers on band D and 6 hours and above for Customers on Band E respectively. “That the policy of classification of the 1st and 2nd Defendants gives preferential treatment of electricity supply to Customers in band A over and above the Claimant and other customers in band B, C, D and E respectively. “That the present policy and the introduction of new tariffs was done without knowledge of many of the distribution companies.” The applicant’s lawyer, Moses Awuru Esq, told the court that unless it intervenes, the injury and breach occasioned by the policy of classification of electricity supply to AEDC’s customers will persist. The Claimant thereby sought the following reliefs: “A DECLARATION that the Policy of classification of the Claimant and other Consumers by the 1st Defendant into band A, B, C, D and E is a breach of the Claimant’s and other Consumers fundamental Right to freedom from discrimination as enshrined in the African and Human and People Right’s and the Constitution of the Federal Republic of Nigeria 1999 (As Amended) and therefore unconstitutional, unlawful, illegal, null and void. ” AN ORDER of this Honourable Court perpetually restraining the Defendants, their privies, agents and other person from giving effect and continuing with the implementation of Multi Year Tarriff Order 2024 and increase in the of prices of Electricity and downgrading of the Claimant and other Customers by classification into Bands A, B, C, D, E forthwith. “AN ORDER of this Honourable Court mandating and compelling the Defendants to pay the Claimant jointly and severally the sum of N5,000,000.00 (five Milion Naira) only for breached of the Claimant’s fundamental right to freedom from discrimination by the Defendants. “AN ORDER of this Honourable Court directing and mandating the Defendants jointly and or severally to pay the Claimant the sum of N1, 000,000.00 (One Million Naira) only as Cost of this suit. Motion on notice In his motion on notice, Ewuru sought an order of interlocutory injunction restraining NERC, AEDC and the Attorney-General of the Federation from continuing with the policy of classification of Nigerian customers to Band A, B, C, D and E by their location and increasing their tariffs pending the hearing and determination of the substantive suit. He also urged the court to restrain the defendants from taking any special step that may negatively affect the rights of the claimant pending the hearing and determination of the suit. He stated that he has raised serious of law which needs to be determined urgently for the benefit of Nigerians. No date has been fixed for hearing of the matter. Meanwhile, NERC had revealed that the pp planned saving N1.5 trillion with the tariff adjustment while subsidizing Bands below the A classification. The Commission had fined Abuja Disco N20 million for wrongfully billing Band B customers with Band A electricity tariff rate.

Obasanjo’s farm, 27 feeders downgraded from Band A to E after FG increased electricity tariff 

The Ibadan Electricity Distribution Company, IBEDC, has made public the names of erstwhile Band A feeders downgraded to B, C D, or E. The Farm Feeder serving the Obasanjo Farm, owned by Former President Olusegun Obasanjo, was downgraded from Band A to Band E in the list released by the IBEDC on Saturday, April 6. About 28 feeders under the IBEDC were downgraded in Oyo, Ogun, Kwara, and Osun States. In the list, some areas dropped from 20 hours of daily power supply to zero hours. The Nigerian Electricity Regulatory Commission, NERC, has said this brought about the removal of those feeders from Band A to the band that fits their daily power allocation. Announcing the April 2024 supplementary Multi-Year Tariff Order on Wednesday, April 3, the Federal Government said it would no longer pay subsidy on electricity consumed by Band A customers, saying others would continue to pay the old rates. Band A customers, who were said to be enjoying electricity for a minimum of 20 hours per day now pay N225 kilowatt per hour. Here is the list of IBEDC Band A downgraded feeders: 1. IBADAN: Bank Road 11kv Feeder – Magazine Road, Oba Adebimpe Road, Oke Bola (Now in Band B with 16 hours supply) 2. OGUN: GTB 11kv Feeder: Only GTBank Training School, Oke Ilewo Abeokuta ( Now in Band B with 19 hours power supply) 3. KWARA: Seminary 11kv Feeder: From High-school Area to Seminary, Randa area, Olomi area, Bowen Area, Takie Junction, Apake area, Star- Light area, Sabo area, Orita Naira Junction and Terminated at Bode-Eniafe Street (Downgraded to Band B with 16 hours power supply) 4. IBADAN: Ami 11KV Feeder: Onireke, Jericho, Railway Quarters (Downgraded to Band C with 12 hours power supply) 5. KWARA: Asa 11KV Feeder: Asa Dam, Ilorin (Downgraded to Band C with 14 hours power supply) 6. OGUN: Homan 11kv Feeder: Daraju, Eagle Packages and NYCIL (Downgraded to Band C with 14 hours power supply) 7. OGUN: Rite Food Quarters 11kv Feeder: Rite Food Quarters (Downgraded to Band C with 12 hours power supply) 8. KWARA: Senior Staff Qtrs F20 11kv Feeder: Senior Camp Road (Downgraded to Band C with 15 hours power supply) 9. KWARA: SF2 New Bussa 11kv Feeder: Ibadan Way, Wawa Garage Road (Downgraded to Band C with 12 hours power supply) 10. IBADAN: State House 11kv Feeder: Ikolaba, Kuye, Road 214, Oniκοκο (Downgraded to Band C with 14 hours power supply) 11. KWARA: Yidi 11kv Feeder: Asa Dam Road, Irewolede Road, High Merit Road (Downgraded to Band C with 14 hours power supply) 12. IBADAN: Dugbe Awolowo 11kv Feeder: Old Bodija, Sango, and Veterinary (Downgraded to Band D with 11 hours power supply) 13. KWARA: Government House 11kv Feeder: Agba Dam Road, Umaru Audi Road, Adelodun Road, Abdulkadir Road, Saad Alamu Street, Offa Road, Flower Garden, Idiagbon Street, Sayomi Street 2nd Avenue Street (Downgraded to Band D with 9 hours power supply) 14. IBADAN: ONIREKE 11KV FEEDER: Link Reservation, Joe Berchort, Oba Akensua (Downgraded to Band D with 10 hours power supply) 15. IBADAN: Oremeji 11kv Feeder: Oba Akinbiyi, Uncle Joe, Letmauk Barracks Road (Downgraded to Band D with 8 hours power supply) 16. IBADAN: Anfani 11KV Feeder: Anfani Road, Ibadan (Downgraded to Band E with 5 hours power supply) 17. KWARA: Basin 11kv Feeder: Umaru Audi Road, Fate Road, Fate Tanke Road, Gra Ilorin, Gss Ilorin, Mubo Strrt, Agric Estate, Sango Road, Alhaji Tunde Mohammed Road, Panat, Station Road, Catchment Road (Downgraded to Band E with 7 hours power supply) 18. Oyo: Crown 11KV Feeder: Premier Rd, Oshuntokun, Adeyi, Awolowo Road (Downgraded to Band E with 1-hour power supply) 19. OGUN: Farm 11KV Feeder: Main Obasanjo Farm (Downgraded to Band E with 7-hour power supply) 20. OSUN: Gbongan Road 11kv Feeder: Gbongan-Ibadan Road (Downgraded to Band E with 0-hour power supply)

NERC Sanctions AEDC for Misapplying New Electricity Tariff 

The Nigerian Electricity Regulatory Commission (NERC) has taken action against the Abuja Electricity Distribution Company (AEDC) for incorrectly implementing the new electricity tariffs in the nation’s capital. In response to numerous complaints from Abuja residents, NERC has fined AEDC a sum of N200 million and instructed the company to refund affected customers who were wrongly billed. According to NERC, the tariff adjustment was intended for customers classified under Band A, who typically receive approximately 20 hours of electricity per day. However, residents in other bands were also subjected to the increased charges when attempting to purchase electricity units. Although AEDC has issued an apology and attributed the situation to an error, NERC’s sanctions underscore the importance of accurate billing practices and consumer protection in the electricity sector.

Despite Unreliable Power Supply, FG Approves Electricity Tariff Hike

In a controversial move, the Nigerian Electricity Regulatory Commission (NERC) has given the green light to increase electricity rates for customers classified under Band A, despite widespread complaints about epileptic power supply. Band A customers, who currently benefit from 20 hours of electricity supply daily, will now face a substantial hike in their tariffs. Mr. Musliu Oseni, the vice chairman of NERC, announced that these customers will be charged N225 per kilowatt-hour, a significant jump from the previous rate of N66. Addressing reporters during a press briefing in Abuja, Oseni revealed that Band A customers constitute 15 percent of the 12 million electricity users nationwide. He further explained that some customers previously classified under Band A have been downgraded to Band B due to their failure to receive the required hours of electricity from distribution companies. Oseni stated, “We currently have 800 feeders categorized as Band A, but this number will now be reduced to under 500. This means that 17 percent now qualify as Band A feeders, serving only 15 percent of total electricity customers connected to the feeders.” The commission also issued an order, titled April Supplementary Order, allowing for a tariff increase to 235 kilowatt-hours per hour. Despite the uproar over the tariff hike, Oseni assured that customers in other bands would not be affected by the review. The decision comes amid ongoing concerns about the reliability and consistency of electricity supply across Nigeria.

FG Moves To End Electricity Subsidy

Nigeria’s Power Minister, Adebayo Adelabu, has announced an end to electricity subsidies, citing a national debt of 1.3 trillion naira to GenCos and 1.3 billion dollars owed to gas companies. Adelabu in a press conference on Wednesday revealed that despite a budget allocation of 450 billion naira for subsidies this year, the ministry requires over 2 trillion naira to sustain the subsidy program. As part of the proposed changes, state governments will now be permitted to independently generate power to supply their states. Addressing the recurring issue of grid collapses, Adelabu attributed these incidents to various factors including gas shortages, aging infrastructure within the grid, limited capacity to evacuate generated power, and the destruction of power stations in the North-East region. He further disclosed that the Transmission Company of Nigeria has shelved over 100 projects due to contract variations caused by fluctuations in forex rates. Consequently, the company will refrain from awarding new contracts until existing projects are completed. In a bid to address power challenges in remote areas, Adelabu announced a budget allocation of over 50 billion naira in 2024 for the construction of mini grids. Adelabu issued a stern warning to electricity distribution companies (DisCos), cautioning that those found negligent in their duties risk having their licenses revoked. In a move to bolster security for power infrastructure, the minister revealed reaching out to the National Security Adviser, Nuhu Ribadu, for assistance in providing adequate security measures.