Reports from across the country indicate that a massive rush by electricity consumers to recharge their accounts before the alleged planned tariff hike has caused a gridlock on the various platforms of the Distribution Companies (DisCos). Despite speculations that the tariff increase was scheduled to begin today, the DisCos stated that they had not yet received approval from the Nigerian Electricity Regulatory Commission (NERC) as of last night.
However, consumers continue to flock to the payment counters and platforms of the DisCos to purchase tokens and recharge their electricity accounts. They have been facing difficulties for several days now due to network challenges on the DisCos’ platforms since the speculation of a tariff increase emerged. Some consumers have even insinuated that the DisCos intentionally disrupted the network to facilitate the tariff hike.
Customers shared their frustrations, citing challenges in loading their electricity tokens purchased in anticipation of today’s planned increase. The confusion surrounding the situation is exacerbated by conflicting statements from the DisCos. For instance, the Abuja Electricity Distribution Company (AEDC) initially announced a tariff increase based on the fluctuating exchange rate but retracted the statement 18 hours later, claiming they had not received approval from NERC.
While some DisCos feigned ignorance of any planned tariff increase, top officials, speaking anonymously, acknowledged the need to adjust their financial outlay due to developments in the foreign exchange market. The General Manager, Public Affairs of NERC, Dr. Usman Abba-Arabi, could not be reached for confirmation.
The AEDC maintained that there is no upward review of tariffs at the moment, stating that they have not received any directive from NERC. The company attributed the difficulties faced by customers in purchasing units to poor network rather than tariff-related issues. The Eko Electric and Ikeja Electric also denied deliberately stalling services to enforce the planned tariff increase, attributing the issues to technical challenges.
The Federal Competition and Consumer Protection Commission (FCCPC) confirmed that it is in contact with Ikeja Electric to address the challenges experienced by customers. The review of electricity tariffs, whether an increase or decrease, is a bi-annual exercise as provided in the Multi-Year Tariff Order (MYTO) schedule for the sector.
Critics, including economist Dr. Muda Yusuf, expressed concerns about the proposed tariff increase, considering the current economic climate. They argued that the timing is inappropriate and insensitive, particularly after the recent fuel price increase. Yusuf emphasized the need for social stability and recommended a review of the timing and rate of tariff changes in the interest of the public.