Power firms quietly slap customers with tariff hike

Share the news

By BusinessDay

Electricity distribution companies (DisCos) in Nigeria have quietly increased tariffs by as much as 18.5 percent, with effect from December 1, 2022, leaving customers confused.

READ ALSO:Ikeja Electric: Electrocution loom as low tension cable touches moving vehicles in Kosofe

BusinessDay findings showed that the two Discos in Lagos, Eko Electricity Distribution Company and Ikeja Electric, have hiked tariffs, with electricity bills being sent out to postpaid consumers.

The Magodo Residents Association (MRA) sent a message a few days ago to its members notifying them of an increase of over 17 percent in tariff.

“It has come to our attention that Ikeja Electric effected an increase to the cost of tariff under the year review by the Nigerian Electricity Regulatory Commission,” the association’s publicity secretary said in a message seen by said in a statement seen by this Business day.

MRA said NERC had revised the Multi-year Tarrif Order, adding that the bilateral Tarrif of 61. 75 chargeable for Ikeja electric’s has been reviewed upward to N72.40 (excluding VAT) effective from December 15, 2022 in with the regulator’s directive.

According to one of the bill’s seen by businessDay, for the particular customer who used to pay N57.65 per kilowatt hours, the new rate effective from December 1 , 2022 was put at N68.30 for residential 3-Phase MD (R4) service Band A customers.

At the time of filling this report, NERC has not released an official statement on the Tarrif rate while efforts to get comments from spokesman for Ikeja Electric and EKEDC proved abortive.

BusinessDay learnt that the regulator (NERC) and the service companies in the country are keeping silent on the Tarrif hike because of that it will incite Nigerians ahead of crucial elections next month.

Several consumers who had got wind of the increase asked for written confirmation by EKO Disco but the company has so far kept mute.

” It seem this increase has been applied surreptitiously because of elections,” one official said.

Reacting to the development, Abel Godson, Executive for Center for Transparency & Accountability in the Energy sector said: “with deteriorating nature of electricity supply in the country, coupled with a deteriorating and ageing infrastructure within electricity newtork, government’s preoccupation should be about stabilizing the market, and not Tarrif hike.”

he said promoting cost-reflctive tarrifs at a time where the country is battling one of it’s worst forex regimes and high inflation rates , which affect the cost of goods and services, will be counterproductive.”

Click Link to read more

Leave a Reply