RESIST OUTRAGEOUS ELECTRICITY PRICE HIKES

CARE CONDEMNS IKEJA ELECTRIC AND OTHER ELECTRICITY DISTRIBUTION COMPANIES IMPOSITION OF AN OUTRAGEOUSLY HIGH ELECTRICITY TARIFF (BAND A) ON COMMUNITIES

CARE DEMANDS AFFORDABLE AND REGULAR ELECTRICITY SUPPLY TO ALL NIGERIAN

TRADE UNIONS AND COMMUNITY ACTIONS ARE NEEDED TO RESIST THESE OUTRAGEOUS TARIFFS

The Coalition for Affordable and Regular Electricity (CARE) condemns the imposition of outrageous billing/tariffs (N227/kWh or more) on many communities without consultation, discussion and agreement by Ikeja Electric and other distribution companies. Some communities were on a Band C tariff of N52 kWh while others were on a Band B tariff of N68 kWh. This is a minimum of 233.82% increment. Due to this migration from Band B or C to Band A, electricity consumers spend more on electricity than the N70,000 minimum wage in a country where 133 million people are crushed into multidimensional poverty. Some communities pay as much as N300 kWh or more.

The cost of living crisis intensifies daily with no end in sight as many can hardly feed let alone afford the outrageous Band A tariff. Electricity for industries and many businesses in Nigeria reportedly constitutes 40% or more of their total costs compared to 10% in China. This huge cost is one major reason many companies closed down or relocated abroad contributing to a high unemployment rate. The Nigerian economy needs cheaper electricity tariffs to grow and develop as an outrageous tariff stymies growth and development.

With this mad rush to migrate more communities into Band A, it is clear that the Band A arrangement is not targeted to highbrow areas or the rich as erroneously stated early this year by the representatives of the government and Nigerian Electricity Regulatory Commission (NERC). The Minister of Power, Mr. Adebayo Adelabu stated in April 2024 that the government will put all Nigerian communities in Band A and eradicate subsidy within 3 years. The agenda is to guarantee fabulous profit for the electricity companies and top government officials. Ikeja Electric has surreptitiously moved at least 179 feeders within six months to Band A. For now, electricity supply to Band A customers has improved but consumers are forced to switch off gadgets and bulbs even when needed. What is the need for a stable and improved electricity supply that will not be utilized because the cost is provocatively high and unaffordable? This rapacious electricity tariff hike is part of Tinubu-led government’s wider anti-people market policies that seek huge profits for big businesses at the expense of workers and poor Nigerians.

Since the privatization of the power sector in November 2013, power companies in connivance with NERC and the Ministry of Power have steadily increased tariffs from N12.45/KWh to now N227 or more, a total of over 1723.29% increment within 11 years while the minimum wage increment within this period is 289%. It is obvious that the only agenda of the private electricity companies is profit and they care less about consumers’ affordability and stable power supply. Besides, the distribution companies have failed to issue prepaid meters to all consumers, leaving many consumers more vulnerable to fraudulent outrageous estimated billing. In communities wherein Band A tariff is operational, quarrels and rancour have broken out amongst consumers who share one prepaid meter because of the exorbitant tariff and billing. Indeed, there are some buildings wherein 3,4,5 or more apartments share one meter because they cannot afford the high cost of prepaid meter, which cost between N124,000 and N303,000. The power companies have equally failed to upgrade existing electricity infrastructure including failing to upgrade or provide new transformers, poles, aluminum conductors, sub-stations etc. Besides, communities are usually forced to provide transformers and other power equipment in response to DISCOs irresponsibility.

Just like the prices of petrol, there will be no end to the fraudulent subsidy claim on electricity pricing. Rather, there will still be the urge to increase tariffs because of the falling value of the Naira compared to the dollar, the rise in the price of gas etc. Hence, NERC and power companies will keep increasing tariffs to feed their bottomless pockets. It remains to be seen how the power companies will bring all consumers under Band A and still maintain 20 hours minimum daily supply when installed capacity is about 15,000MW as well as suffering from obsolete electricity infrastructure that frequently causes grid/system collapse. In reality, if the government and power companies succeed in imposing Band A tariff on all consumers and communities, the practicability is that electricity supply may drop to less than 10 hours while the tariff remains so high unless there is massive investment in the sector, a feat the power companies cannot undertake.

Given the obvious failure of privatization and the private electricity companies, there is an urgent need to re-nationalise the power sector, bring it under public ownership and subject it to democratic control and management of workers and consumers with the view to ushering in massive public investment that will drive the cost of electricity down and make it affordable to Nigerian consumers while electricity consumed by the poorest is subsidized.

Electricity consumers in different communities must begin to organize resistance against these outrageous tariffs. There is also the need for joint actions of different communities based on the demand for regular and affordable electricity. We also call on trade unions especially the Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and National Union of Electricity Employees (NUEE) to lend support to the struggle in communities against exploitation by DISCOs and for affordable tariffs. We also urge them to use their national spread to help provide a platform to unite different communities in struggle across the country as a step towards a nationwide protest against electricity exploitation.

Coalition for Affordable and Regular Electricity (CARE) hereby demands the following:

• Scrap the Bands, guarantee affordable and regular electricity to all
• Reverse electricity tariff to pre-May 2024 rate (N48 kWh).
• Issue prepaid meters to all apartments and consumers at no cost
• Upgrade electricity infrastructure for better service delivery.
• End privatization of the power sector; for public ownership of the power sector under democratic control of workers and community people.

Chinedu Bosah                                                                  Shoyombo Monsuru

National Coordinator                                                           National Secretary

Email: [email protected]