Many former Band B electricity customers are disgruntled with Distribution Companies that “imposed” Band A feeders on them even as they bemoan the new electricity tariff they now have to shoulder after they were upgraded to Band A.
The customers, many of whom started paying the new tariff in May and June, including July, argue that they were originally on Band B before they were upgraded to a Band A feeder without their consent.
They have also demanded that they be returned to Band B, in which subscribers there, so far, have yet to pay for the hefty electricity rate hike.
The Nigerian Electricity Regulatory Commission, an independent regulatory body with authority for the regulation of the electric power industry in Nigeria, in April this year gave thumbs up to an increase in electricity tariff for customers in Band A.
Following the marching orders from NERC, Nigeria’s 11 DisCos immediately sprang into action and, despite the many biting challenges to power distribution that they face, got the ball rolling to ensure a seamless transition to the new tariff.
The DisCos, namely Abuja DisCo, Benin DisCo, Eko DisCo, Enugu DisCo, Ibadan DisCo, Ikeja DisCo, Jos DisCo, Kaduna Electric DisCo, Kano DisCo and Port Harcourt DisCo, then issued communiqués to their respective service states in Nigeria where they can distribute electricity, and reiterated the increment approved by NERC.
To probably calm frayed nerves, the NERC gave DisCos the go-ahead to only charge Band A customers the new tariff. Customers in other bands, however, would have temporary relief as they will gradually be absorbed into the new payment regime.
“I use this opportunity to ask Ikeja DisCo and NERC to return us to Band B. Must they make profit at our own detriment? And no, we did not die when we were on Band B”
According to NERC, as from April 3, customers in Band A will be charged N225 per kiloWatt-hour as electricity tariff, an increase from the old rate of N66 per kWh.
Under its Service-Based Tariff, NERC classified consumers in Bands A to E, where Band A customers receive a minimum of 20 hours electricity; Band B: minimum of 16 Hours; Band C: minimum of 12 hours; Band D: minimum of 8 hours; Band E: minimum of 4 hours daily.
An electricity customer under Ikeja DisCo who lives in Egbeda, Lagos State, Adetola Owoade told The Point, “They increased their tariff for customers on Band A in April, but as at the beginning of May, I was in Band B.
“While I was in Band B, I was paying N5, 000 for about 74kWh of energy but in June, I tried to buy some units and they gave me just 22.22kWh for the same amount.
“It was later that I learnt that the so-called DisCos pushed us into Band A. Who does that?
“Please, help us tell Tinubu that some of us don’t need Band A. What is Band A to start with? I don’t need it. I need a tariff that I can conveniently afford,” Owoade said.
Another customer under Ikeja DisCo, Francis Ekeh, who said that he lives in Maryland, Lagos State, told our correspondent that he heard about the increase like any other Nigerian but did not fully comprehend how it would impact him, until he bought some tokens for use by him.
According to Ekeh, he did not pay too much attention to the uproar when the increase took effect, but was forced to “adjust” how he uses energy after he bought electric units and “the whole thing was used up very quickly”.
“I heard that the government wanted to increase the electricity tariff. I even saw the new rate but I did not fully grasp the significance of the increase. It put a big hole in my pocket.
“I was on Band B but I learnt that those in the area where I live were migrated to Band A. I used to purchase about N20, 000 worth of units and it would sustain me throughout the month. And that was because I would get more than 290kWh of energy.
“After we were upgraded, I bought units, for the first time in June, with the usual amount (N20, 000). They gave me around 89kWh units and the whole thing was used up very quickly.
“I then decided to adjust how I use energy. I am now switching off most of the appliances that I use. I no longer even operate my inverter air conditioner. And if I must, I switch it on for only 2 hours a day.
“Despite my efforts, it’s like I am not doing enough to preserve energy and I am at a loss to this whole situation.
“I use this opportunity to ask Ikeja DisCo and NERC to return us to Band B. Must they make profit at our own detriment? And no, we did not die when we were on Band B,” Ekeh said.
NERC has however already provided an answer to why customers on Band B were upgraded to Band A. The Vice Chairman of NERC, Musiliu Oseni, in the Commission’s 2024 Supplementary Multi-Year Tariff Order, stated that if customers’ service level improved to at least 20 hours daily, they should be “upgraded” from lower service bands to Band A.
The regulator also added that if the DisCos failed in meeting the apportioned service level (minimum of 20 hours) to a Band A feeder for seven consecutive days, the feeder would, in effect, be downgraded to lower bands.
An affected customer, Mike Okenye, however, begged to differ with NERC.
He said, “I don’t care about the sanctions they want to visit upon recalcitrant DisCos.
“Such sanctions will not work. They never work in this country.
“Since they made the announcement, there are days when we get less than 20 hours for days running, yet we have not heard in the news that a DisCo was sanctioned.
“Let them peacefully return us to Band B,” he pleaded.
The Point recalls that President Bola Tinubu, before his election into office, told Nigerians that they should not vote to reelect him if he could not address the power situation in Nigeria.
Tinubu said this when he spoke at an event, “Business Lunch with Asiwaju”, which was held during the 2023 presidential election campaign.
The President said, “By whichever way, by all means necessary, you must have electricity and you will not pay for estimated billing anymore.
“A promise made will be a promise kept. If I won’t keep the promise and I come back for a second term, don’t vote for me.”
A political analyst, Sadat Aliu, told The Point that, concerning Tinubu’s promise, the Minister of Power, Adebayo Adelabu, had to understand the enormity of the responsibility he has in keeping the President’s vision of how Nigeria’s perennial power crisis can be tackled.
Aliu said that every policy of the Minister must not “crush” the ordinary Nigerians who have sacrificed so much, considering the struggling economy.
“The President promised us constant power supply but this is not how I anticipated it would happen. The tariff is too high.
“The Minister of Power therefore has a lot of work to do.
“Instead of channeling more electrical power to Band B customers so that there will be a reason to upgrade them to Band A, the Minister can assure that some of that power is given to Bands C,D and E customers. Those ones, too, need power.
“The Minister must understand that he has a responsibility to keep the President’s vision for power alive and vibrant. His policies must not crush the ordinary Nigerians who have already sacrificed so much in this economy.
“The Minister means well. But if he proves to be clueless, he should be let go immediately.”
A senior marketer with Ikeja DisCo, who pleaded anonymity because he is not authorised to speak on the matter, said there was nothing his DisCo, IKEDC, could do about customers who were upgraded.
According to him, it is a the right thing to do if “There’s nothing we can do about it (upgrades). We are only following the instructions we were given by the government.
“We only want Nigeria to be the giant in power generation and distribution in Africa. It is the right thing to do, and we are gradually making slow but steady progress towards achieving that,” he declared.
