TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

The needless hike in electricity tariff – The Sun

The Citizen by The Citizen
September 10 2020
in Public Affairs
A A
0
NERC denies increase in electricity tariff as consumer groups kick

The new hike in electricity tariff announced recently by the Nigerian Electricity Regulatory Commission (NERC) is unnecessary considering the poor state of the economy and growing poverty among Nigerians. Under the “service reflective tariff,” electricity tariff rises from N22 to N66 kwh. The new duty, which took effect on September 1, abolished the old billing system and introduced another one with new classes of tariff categorisation as approved by the agency. Under the old tariff regime, per kilowatt hour (kwh), for residential consumers under Ikeja Electric, for instance, was N21.80 but now increased to N53.87, about 120 per cent hike.

As a result of the new order, Distribution Companies (DisCos) have been directed to bill customers in accordance with their classifications. In effect, consumers, who receive less than 12-hour electricity supply, will not be affected in the new hike until service improves. According to NERC, “the order reflects the impact of changes in macroeconomic parameters and revenue requirements and a revised tariff design that aligns with rates paid by customers with the quality of services as measured by the average availability of power over a month period.” The agency also claimed that its decision followed “consultations and directives on tariff policy…”

These claims contradict the recent order of President Muhammadu Buhari for mass metering of consumers in the country in a bid to end estimated billing. Clearly, the new tariff has flouted the presidential directive and offers consumers little or no choice over their consumption patterns. We maintain that any review of tariff ought to be based on improved service delivery, while the poor and the vulnerable in the society should pay less in all cases. None of these has happened.

In June, the Presidency and leadership of the National Assembly intervened to halt the implementation of the new electricity tariff by Distribution Companies (DisCos). The planned hike was then suspended until the first (Q1) of 2021. Without the timely intervention of the government, a new tariff hike regime would have commenced from July 1. All parties agreed to suspend the planned tariff hike because of the ravaging Coronavirus pandemic and its attendant impact on the incomes of Nigerians.

Early in the year, the NERC directed the 11 electricity distribution companies (Discos) to stop further collection of electricity bill under the estimated billing system.     The regulatory agency had placed limits on estimated bills that could be issued by Discos to unmetered customers.  While consumers thought this was good, the order was not enforced by the relevant regulatory agencies. If the order was enforced, it would have enhanced the power supply chain.

Apart from meeting the metering needs of electricity consumers, there is urgent need to improve the nation’s power supply. Many firms have either closed shop or relocated to neighbouring West African countries as a result of unstable power supply. Some firms run on generators and other sources of power supply, thereby increasing the cost of production.  Currently, the national energy requirement is between 40,000MW and 60,000 MW, while generation is less than 5,000MW. We believe that the Discos should show more commitment to meeting the power supply need rather than the constant plan to hike tariffs. It was also agreed by all the parties that the Federal Government should continue to subsidise the power sector by bearing the difference in the present tariff until further notice.

Sadly, electricity consumers still experience unstable power supply, outrageous and indiscriminate bills. While Nigerians are not enjoying regular electricity supply, businesses are equally going down. The damning situation has negatively affected the economy since power is the catalyst for economic development. Without doubt, Nigerians are not likely to oppose any reasonable service reflective electricity tariff if there is adequate supply of electricity as well as meters.

Unfortunately, the Discos are yet to provide prepaid meters for all consumers through the Meter Assets Programme (MAP). Until the Discos are able to meter all households so that people will no longer be subjected to estimated billing, Discos will have a tough time convincing Nigerians the desirability of implementing a new service reflective electricity tariff. The economy is still wobbling, threatened by another recession, with majority of Nigerians at the receiving end of government’s policies. This is not the best time for any hike in the price of electricity. As a matter of fact, profit consideration should not override good service delivery, which the consumers are not getting at the moment.

Previous Post

Worthy ambassador – The Nation

Next Post

Cutting inexcusable losses at the seaports – Punch

Related Posts

Nigeria’s inflation rate rises to 21.09%
Public Affairs

Africa’s hunger burden – Punch

July 27 2026
Apapa gridlock must be resolved permanently – Punch
Public Affairs

Apapa gridlock must be resolved permanently – Punch

July 23 2026
Duty waivers must not become a fiscal hole – Punch
Public Affairs

Duty waivers must not become a fiscal hole – Punch

July 20 2026
State airports: White elephant epidemic – Punch
Public Affairs

State airports: White elephant epidemic – Punch

July 17 2026
Jega resonates loudly on Electoral Act underbelly – Punch
Public Affairs

Jega resonates loudly on Electoral Act underbelly – Punch

July 14 2026
Almajiri Commission: Stop this budgeting absurdity – Punch
Public Affairs

Almajiri Commission: Stop this budgeting absurdity – Punch

July 13 2026
Next Post
Diverting ships to Eastern ports – Punch

Cutting inexcusable losses at the seaports - Punch

Trump gets Nobel Peace Prize nomination from Norwegian politician

Trump gets Nobel Peace Prize nomination from Norwegian politician

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Cross River Igbo community alleges illegal taxation, seeks government intervention

Cross River Igbo community alleges illegal taxation, seeks government intervention

by The Editor
July 27 2026
0

...

Sokoto LG chairman quits APC, resigns from office

Sokoto LG chairman quits APC, resigns from office

by The Editor
July 8 2026
0

...

Bauchi Electoral Commission fixes August 17 for LG election

Bauchi Electoral Commission fixes August 17 for LG election

by The Editor
June 19 2026
0

...

Court grants indigenous status to Hausas born in Jos North

Court grants indigenous status to Hausas born in Jos North

by The Editor
June 11 2026
0

...

APPOINTMENTS

Tinubu appoints new special adviser on House of Reps matters

Tinubu appoints new special adviser on House of Reps matters

by The Editor
July 27 2026
0

...

Tinubu appoints Fayose REA chairman, names 25 others

Tinubu appoints Fayose REA chairman, names 25 others

by The Editor
July 20 2026
0

...

Tony Elumelu to step down as UBA chair, bank names successor

Tony Elumelu to step down as UBA chair, bank names successor

by The Editor
July 6 2026
0

...

Sahara Group appoints Folake Soetan as Arahas MD to drive oilfield services transformation across Africa

Sahara Group appoints Folake Soetan as Arahas MD to drive oilfield services transformation across Africa

by The Editor
July 3 2026
0

...

ODDITIES

Nigerian woman in Canada demands husband swear oath against cheating before visa sponsorship

Nigerian woman in Canada demands husband swear oath against cheating before visa sponsorship

by The Editor
July 23 2026
0

75-year-old man bags 10 years jail for defiling minor

75-year-old man bags 10 years jail for defiling minor

by The Editor
July 16 2026
0

Court remands blogger over defamation of Soludo, son

Court remands blogger over defamation of Soludo, son

by The Editor
July 13 2026
0

GLOBAL NEWS

US orders embassy staff to leave Nigeria over insecurity

US warns Nigerians with dual citizenship against travelling on foreign passport

by The Editor
July 26 2026
0

...

Republican senators mount drive to oppose Biden certification

Insecurity: Instead of addressing persecution, Nigeria launched PR campaign – Ted Cruz

by The Editor
July 23 2026
0

...

Xenophobia: Nigerian students funded your freedom – Shettima reminds South Africa

Xenophobia: Nigerian students funded your freedom – Shettima reminds South Africa

by The Editor
July 21 2026
0

...

US Congress okays bill to cut foreign aid to Nigeria

US Congress okays bill to cut foreign aid to Nigeria

by The Editor
July 17 2026
0

...

Nine European countries, Ukraine form defence coalition

Nine European countries, Ukraine form defence coalition

by The Editor
July 14 2026
0

...

State of the States

Anambra sanctions seven schools over graduation parties

Anambra sanctions seven schools over graduation parties

by The Editor
July 27 2026
0

...

Abia takes delivery of 20 more electric buses, to expand route network

Abia takes delivery of 20 more electric buses, to expand route network

by The Editor
July 27 2026
0

...

Gov. Adeleke deposes Oba Joseph Oloyede, Apetu of Ipetumodu

Osun: I’ve kept my promise of good governance – Adeleke

by The Editor
July 23 2026
0

...

Lagos blames heavy rainfall for worsening road conditions

Lagos blames heavy rainfall for worsening road conditions

by The Editor
July 17 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
NFF, AFC Toronto condemn racist abuse of Super Falcons’ Okoronkwo

NFF, AFC Toronto condemn racist abuse of Super Falcons’ Okoronkwo

July 28 2026
ADC revises primary election timetable, nomination fees

Appeal Court reverses order deregistering ADC, four others

July 28 2026
Dangote to donate one-third of wealth to charity

Dangote to donate one-third of wealth to charity

July 28 2026
Anambra sanctions seven schools over graduation parties

Anambra sanctions seven schools over graduation parties

July 27 2026

EDITORIAL REVIEW

Nigeria’s inflation rate rises to 21.09%

Africa’s hunger burden – Punch

by The Editor
July 27 2026
0

Apapa gridlock must be resolved permanently – Punch

Apapa gridlock must be resolved permanently – Punch

by The Editor
July 23 2026
0

Duty waivers must not become a fiscal hole – Punch

Duty waivers must not become a fiscal hole – Punch

by The Editor
July 20 2026
0

State airports: White elephant epidemic – Punch

State airports: White elephant epidemic – Punch

by The Editor
July 17 2026
0

Jega resonates loudly on Electoral Act underbelly – Punch

Jega resonates loudly on Electoral Act underbelly – Punch

by The Editor
July 14 2026
0

Opinion

Remi Tinubu under fire over akara, roasted corn remarks

Beyond ‘akara’ leadership

by The Editor
July 6 2026
0

...

Trump’s U-turn on Iran war ends Israel’s Middle East dream

Trump’s U-turn on Iran war ends Israel’s Middle East dream

by The Editor
June 17 2026
0

...

Terrorists kidnap Army Major General, wife in Katsina

Slain General: When the protectors need protection

by The Editor
June 17 2026
0

...

Bandits attack mosque, kill 1, abduct 9 in Kaduna

When terrorism becomes the talk of town

by The Editor
June 9 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.