A former NERC chairman, Sam Amadi says the periodical increase in electricity tariff will continue because of factors like the dollar-to-naira rate and increased petrol pump price.
In his words, the current tariff plan would change because it is against the dollar rate. “The increase in tariff is a response to the current economic changes,’’ he told Nigeria Info.
The statement is coming a day before the deadline for interested Nigerians to apply to participate in the Rate Case Hearing on the tariff hike applications of Distribution Companies to the Nigeria Electricity Regulatory Commission, NERC.
Nigerians who wish to join in the hearing are required to submit their applications to tariff@nerc.gov.ng before the close of business on 20 July 2023.
In a joint application dated 14 July 2023, 11 electricity Distribution Companies (DISCOs) sought NERC’s approval to review tariffs.
But some power users are already accusing the DISCOs of hiking prices before the hearing.
Last week, some Port Harcourt residents said they now pay more for electricity units. They accused the Port Harcourt Electricity Distribution Company (PHED) of increasing tariffs without notifying their customers.
They said the increase in tariff would cause more hardship for the citizens who are still struggling with the economic hardship caused by the petrol subsidy removal.
Mr. Amadi said DISCOs only inform the public of plans to increase tariffs as a necessity.
“What the DISCOs are doing is creating a concept for public communication,” he said.
“If NERC approves of the increase, it is going to save up on the cost of gas and other costs in the industry. If only government could pay the DISCOs and do the subsidy,” he added.
Nigerians Burdened by Higher Utility Costs
An increase in electricity tariff would create bigger holes in the already perforated pockets of Nigerians.
A caller on Hard Facts on Nigeria Info FM Port Harcourt could not hide his frustration.
“They removed fuel subsidy, and now they have plans on raising the tariff of your alternative source of power. They do things without due consideration,” he complained.
“Do they want to strangle us?” another caller asked.
Yet, another said, “We say we have consumer protection agencies, which means they are not doing their jobs because we are being exploited.”
“Why would they increase the tariff when they do not even supply us with enough power,” he queried.
Some DISCOs had announced in June that a new tariff would take effect on 1 July.
The decision was reversed the following day, after widespread criticism. The DISCOs later said they would await approval from the Nigerian Electricity Regulatory Commission (NERC) before increasing the price Nigerians pay for power.
