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Band A Tariff Review: All-Electricity Consumer Protection Forum gives 72-hour ultimatum to NERC, threatens legal action, protest 

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Last updated: April 4, 2024 4:12 pm
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7 Min Read
Adeola Samuel – Ilori (Ambassador) National Coordinator, All Electricity Consumer Protection Forum
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Oredola Adeola

 

The All-Electricity Consumer Protection Forum has given the Nigerian Electricity Regulatory Commission (NERC) a 72-hour ultimatum to withdraw its minor review of tariffs in the Band A category or face court action and a protest from its trustees.

 

Adeola Samuel – Ilori, National Coordinator, of AECPF, made this known in a statement released and obtained by Advisors Reports on Thursday.

 

According to Samuel-Ilori, we shall challenge the illegality in the court of law and through people’s revolt via peaceful protest,

 

The National Coordinator of the advocacy group in the statement referred to Section 116(2)(a) of electricity Act 2023 as amended, emphasising that the provision of the law remains unambiguous as to the process, reasons that must be adduce before consideration can be given to any requests on increase in tariff, be it major review, minor review and extraordinary review.

 

He also referred the NERC to the provision of the paragraph 7 in chapter 3 of regulatory procedures and steps on increase in tariff by NESI remain clear and paragraph 8((b) which emphasised on consultation that NERC must take with stakeholders before any form of tariff increase.

 

He also noted that the paragraph nine (9) of the same provision stated that such consultation comment shall be reviewed and collated before seven days before the commission will announce the increase or otherwise.

 

He said, NERC order on MYTO 2024 has already announced increase in tariff, which put Band A in the average of N120KwpH for Non-MD Band A, MD1 Band A N124KwpH while Band A MD2 was N129KWpH from January 25.

 

“This announced increase went through the stipulated process in section 116(2)(d) of Electricity Act,2023 and can’t be change along the way with any that has not followed due process.

 

“In view of the above stated Germaine prognosis and facts of the law, we demand immediate reversal of the increase in Band A tariff and also demand the immediate implementation of those order on meter refund and on implementation of capping order 197/2020 as stated in order 2024/007 respectively.

 

The National Coordinator of the All-Electricity Consumer Protection Forum therefore accused NERC of descending to sentiment, emotional blackmail, and outright obstruction of its regulatory proclamations, all in an attempt to inflict pain on consumers and to please the DisCos in order to increase its 5% receivables in the collection of consumer tariffs monthly from the escrow account.

 

Samuel-Ilori revealed that the NERC had previously announced an increase in tariffs in January 2025 in response to a rate case hearing held in July 2023, only to issue a new directive for an imminent increase in January 2024.

 

He expressed shock at the sudden reversal and accuses NERC of insensitivity and illegality, threatening that the forum is prepared to challenge in court and through peaceful protests.

 

Samuel-Ilori also criticized NERC’s handling of the power conferred on its office by the relevant law, either by the repealed Electric Power Sector Reforms Act or the newly enacted Electricity Act 2023 as amended, as stated in sections 32 and 34, respectively. 

 

He said, “The power you have exercised has only brought harm to consumers and promoted the overbearing attitudes of the Discos. Despite being made aware of these issues; you turn a deaf ear.

 

“You pretend to issue directives on matters affecting consumers, but what is the point if they are not followed, or your regulatory laws are disregarded?

 

“Take, for example, your directive in ORDER/2024/007, where you instructed Discos to refund adjustments to customers due to the non-implementation of the capping order 197/2020.

 

“After four years of effort from our office, you finally issued the sanction. But did you bother to follow up and ensure it was implemented? You told them to publish the names of those they adjusted for by the end of March, but was it done?

 

“Instead of asking how it would be done, you rewarded customers with an increase in tariffs, further pampering the Discos. Another example is your order to refund money to consumers who purchased meters under the MAP scheme in April 2023, but till date, no consumers have received any refund.

 

“You know it’s the Discos’ duty to provide meters as stated in section 13(2) of the Consumer Protection Regulations, 2023, but you never queried any of the Discos why they have not refunded. Yet, you are quick to impose tariff increases, albeit illegally, betraying the duty imposed on you in section 34(1)(d) to be an unbiased umpire.

 

“Worthy of note is the provision of section 116(1) of the Electricity Act, 2023, which commands you to give time to Discos to ensure all consumers are metered. Failure to meet this time frame leads to their license being revoked.

 

“Instead of exercising this power to relieve consumers, you chose to increase meter prices, which doesn’t belong to consumers in the first place.

 

“You never bothered to sanction Discos who flagrantly disobeyed section 13(2), which urges them to provide meters and meter accessories to consumers at no cost to them,” Samuel Ilori said. 

 

The National Coordinator of the All-Electricity Consumer Protection Forum while condemning NERC’s insensitive approach to the plight of consumers, rejected the increase, which was scheduled to take effect on January 25 and has therefore promised to take legal action against the Commission if it fails to withdraw its decision to increase electricity tariffs within 72 hours of receiving the letter.

 

 

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