As global energy prices skyrocket, there has been a markedly increase in electricity tariffs. Unfortunately, Nigeria is not left behind when it comes to tariff increases; last year saw the introduction of a new tariff, a reversal following the pandemic and then a renewed Service-Based Tariff. Early in the year, the Commission denied having approved a new tariff order that would have seen tariffs increase by 50 per cent. But many Nigerians believe that some sort of increase has occurred in their tariffs.
In a leaked memo dated 25th August 2021, with reference number 023/EKEDP/GMCLR/0025/2021, Eko Electricity Distribution Company (EKEDC) approved a tariff increase in line with the Service-Based Tariff (SBT) approved by the Nigeria Electricity Regulatory Commission (NERC). The alleged memo stated that the increment would take effect in September and reflected in October electricity bills. However, EKEDC went on to deny the validity of the memo. “Our attention has been drawn to news making the rounds in the media from unsubstantiated sources of a planned adjustment in electricity tariffs. Eko Electricity Distribution Plc would like to inform the general public to disregard all such reports not emanating from the management or the company’s website – www.ekedp.com,” EKEDC said in a statement.
The difference in the number of units purchased with ₦10,000 for August and September from an AEDC Customer
However, an investigation into the transaction history of several consumers shows that energy purchased on the popular vending platform Buypower.ng in August 2021 yielded more units than energy purchased in September. For example, a customer of Abuja Electricity Distribution Company (AEDC) who purchased ₦10,000 worth of energy on 24th August 2021 received 187 units. The same customer purchased another ₦10,000 worth of electricity on 14th September 2021 and received 179.8 units.
When asked if they noticed a change in tariff a customer of AEDC said, “Yes. It’s annoying, silent increase”. Another consumer stated that “There has in fact been two increases in tariff this year. I guess the power companies have decided not to bother to announce increment in tariff anymore but rather to sneak them on us.”
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The difference in the number of units purchased with ₦10,000 for August and September from a PHED Customer
The tariff increase also was noted by a customer of Port Harcourt Electricity Distribution Company (PHEDC), who purchased ₦15,000 worth of electricity on 24th August 2021 and received 253 units; however, for the same amount, a purchase on 24th September 2021 yielded 242.5 units of electricity only.
The speculated tariff increment comes as the prices of goods and services continue to rise amidst two-digit inflation figures. According to the National Bureau of Statistics (NBS), the country recorded an inflation rate of 16.63% for September 2021. The Nigerian Labour Congress (NLC) has vowed to resist any tariff increment as it goes against the agreement reached during the Federal Government/Organised Labour Committee on electricity tariffs. The FG had agreed to freeze electricity tariffs until both parties adopted the recommendations by the Committee.
The question, however, remains was there an increase in electricity tariffs on 1st September 2021?