Labour, private sector protest as Discos hike tariff again

The Nigeria Labour Congress, Trade Union Congress, and Organised Private Sector, have faulted the latest hike in the electricity tariff payable by customers in the Band A Category.

Following the depreciation of the naira against the United States dollar, and inflation, among other factors, the Nigerian Electricity Regulatory Commission again raised the tariff payable by Band A customers.

Some distribution companies including Ibadan Electricity Distribution Company, Eko Electricity Distribution Company, and Kaduna Electricity Distribution Company, among others, announced an upward review of their tariffs for Band A from N206.80 per kilowatt-hour to N209.50/kWh.

Though the increase appears marginal, organised labour, private sector operators and consumers kicked against it.

They wondered why the power sector regulator would approve a tariff hike despite calls for the reversal of the previous tariff hike.

In a statement, the acting General Manager of the Ibadan Electricity Distribution Company, Francis Agoha, said the review was duly approved by NERC as captured in the multi-year tariff supplementary order.

Agoha said the adjustment was necessitated by several key economic indices, including fluctuations in the exchange rate, the current inflation rate, available generation capacity, and the cost of gas.

“These factors have significantly impacted operational costs, and the new tariff will mitigate these financial pressures while continuing to deliver high-quality electricity services,” Agoha disclosed.

He said the adjustment affects only our Band A customers, adding that “the tariffs for Bands B, C, D, and E remain unchanged.”

The IBEDC boss acknowledged that the rise in tariffs could be a concern for customers, however, he said the increase was necessary.

“We understand that any change in tariffs can be a concern for our customers, and we assure you that this adjustment is necessary to maintain and improve the quality of our services. Our goal is to ensure that you receive the best possible value for your money,” he stated.

The tariff hike is coming amid complaints from customers, including manufacturers as well as public and private institutions that their monthly electricity bills are becoming grossly unaffordable.

Also, Kaduna Disco, in a statement titled, ‘Upward Review of Tariff for Band A Feeders’, disclosed that the new tariff became effective on July 1.