By Ojugbele Omotunde
A recent announcement from the Nigerian Electricity Regulatory Commission (NERC) Vice Chairman Musiliu Oseni, revealing a substantial 300% tariff hike for electricity, has sparked dismay among industry experts.
Specifically targeting Band A consumers, this hike permits power distribution companies to adjust prices to N225 ($0.15) per kilowatt-hour, a stark increase from the previous N68 for urban consumers.
In interviews conducted separately in Lagos on Wednesday, experts voiced concerns over the ramifications of such a drastic increase on electricity users nationwide.
Mr. Adeola Ilori, the National Coordinator of All Electricity Consumers Protection Forum, denounced the tariff rise, citing procedural irregularities and the necessity for compliance with NERC’s regulatory framework.
Highlighting potential legal action, Ilori emphasized the importance of adherence to the Electricity Act 2023 and consumer protection regulations.
He stressed the need for thorough examination and stakeholder consultation, despite the modest nature of the increase.
Similarly, Mr. Chinedu Amah, CEO of Spark Nigeria Ltd, raised apprehensions regarding the clarity and oversight of the Band A classification, cautioning against potential exploitation if not adequately defined and monitored.
On the other hand, Mr. Lanre Elatuyi, an electricity market analyst, acknowledged the tariff hike, attributing it to fluctuations in dollar and gas prices.
He acknowledged the challenges faced by Band A clients, emphasizing the necessity of ensuring promised supply hours and strict adherence to service standards.