IBEDC Sacks Achife as Managing Director

The Board of Directors of the Ibadan Electricity Distribution Company has relieved Mr Kingsley Achife of his appointment as the company’s Managing Director. The board refused to renew Achife’s contract, naming Francis Agoha as the Acting Managing Director of the IBEDC effective from May 31. Achife’s sack was contained in an internal memo dated May 31, a copy of which was sighted by our correspondent. “Dear colleagues, the Board of Directors of the Ibadan Electricity Distribution Company wishes to inform the staff that it has decided not to renew the contract of the current Managing Director, Engineer Kingsley Achife. “The Board expresses its deepest gratitude to Engineer Kingsley Achife for his contributions to the company and for laying the foundation for the ongoing turnaround. “In light of this decision, the Board is pleased to announce the appointment of the most senior executive, Engineer Francis Agoha as the Acting Managing Director of IBEDC. Engineer Francis Agoha will assume leadership responsibilities with immediate effect and will work closely with the Board to ensure a smooth transition,” the memo read in part.

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.”

TCN Transfers Market and System Functions to Newly Established Entity

In a bid to revitalize Nigeria’s power sector, President Bola Tinubu, in collaboration with the Nigerian Electricity Regulatory Commission (NERC), has introduced sweeping reforms by unveiling the Nigerian Independent System Operator of Nigeria Limited (NISO). This significant restructuring marks a pivotal moment for the country’s energy landscape. The decision was formalized through an official order signed by TCN’s Chairman, Mr. Sanusi Garba, and Vice Chairman, Mr. Muslim Oseni, in Abuja on Saturday. Under the directives outlined in the order, TCN will undergo a comprehensive transfer of all market and system operation functions to the newly established NISO. This realignment of responsibilities is in accordance with the stipulations set forth in the Electricity Act 2023, aimed at providing a more streamlined approach to the management of Nigeria’s power infrastructure. Previously, TCN held critical licenses, including Transmission Service Provider (TSP) and System Operations (SO) licenses issued by NERC. With the inception of NISO, TCN will divest its market and system operation assets and liabilities to the newly formed entity, allowing for a sharper focus on its core transmission functions. To facilitate this transition, the Bureau of Public Enterprises (BPE) has been tasked with overseeing the incorporation of a private company limited by shares under the provisions of the Companies and Allied Matters Act (CAMA) by May 31. This entity, named the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume full responsibility for market and system operation functions as outlined in the Electricity Act and TCN’s system operation license. NISO’s mandate encompasses the efficient management of assets and liabilities associated with market and system operations on behalf of market participants and consumer groups. Furthermore, the newly established ISO will play a crucial role in negotiating contracts for ancillary services with independent power producers and generation licensees, ensuring the stability and reliability of Nigeria’s national grid.

Court bars Kano DisCo from implementing new tariff

A Federal High Court in Kano has issued an order restraining the National Electricity Regulatory Commission and the Kano Electricity Distribution Company from implementing the new electricity tariff for Band A consumers. The suit marked FHC/KN/CS/144/2024 was filed by Super Sack Company Limited and BBY Sacks Limited. Others are Mama Sannu Industries Limited, Dala Foods Nigeria Limited, Tofa Textile Limited, and Manufacturers Association Of Nigeria Limited. However, ruling on an ex-parte motion by Abubakar Mahmoud, counsel to the plaintiffs, the presiding judge, Abdullahi Liman, ordered NERC and KEDCO from going ahead with the impending tariff pending the hearing and determination of the motion on notice filed before it. The order also restrained the defendant from intimidating and threatening to disconnect the applicants’ electricity supply for non-acceptance of the new increased tariff. Recall that in April, NERC approved an increase in electricity tariff for customers under the Band A classification. With the new tariff, customers under the category, who receive 20 hours of electricity supply daily, would begin to pay N225 per kilowatt, starting from April 3 — up from N66. The sudden hike has since been criticized by the House of Representatives and other stakeholders who have asked NERC to suspend the implementation of the new tariff.

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.

Don’t connect unmetered customers, NERC tells DisCos

*Says only 5.3m electricity consumers metered The Nigerian Electricity Regulatory Commission (NERC) has cautioned Electricity Distribution Companies (DisCos) to refrain from connecting new customers who have not been allocated meters. According to the information which was disclosed in a statement via its X (Twitter) handle, the commission cited the 2023 Electricity Act which “mandates it to ensure DisCos provide quality service to customers. The Commission also emphasised that all new electricity connections must be done strictly based on metering before connection. “All new electricity connections must be done strictly based on metering before connection. “That is, no new customer should be connected by a DisCos without a meter first being installed at the premises.” The commission has for some time, battled numerous complaints about estimated billing as well as default in supplying meters by DisCos from customers. The commission has for some time, battled numerous complaints about estimated billing as well as default in supplying meters by DisCos from customers. According to NERC’s customer enumeration data, as of March 2023, 7 million customers were unmetered. Data from the Commission further revealed that about 3 million meters were outdated and due for replacement. The regulators’ first quarter 2023 report showed that there were 12.3 million registered customers, and just 43.3% (5.3 million) of them were metered. The remaining 56.69% of customers, about 7 million, are unmetered and are served via estimated billing which is a major issue for the Commission. To resolve the crisis surrounding the meter issues, NERC came up with an idea – Credited Advance Payment for Metering Implementation – CAPMI. CAPMI was created to solve the slow pace of customer metering by the DisCos, as well as resolve the complaints received from customers dissatisfied with the current estimated billing practices. With CAPMI, customers were allowed to pay the cost of the meter into a dedicated account jointly managed by the DisCos and the meter Vendors/Installers. The allocated meters would be installed within 45 days by a NERC accredited Vendor/Installer once the payment was confirmed.