CARE Demands That Nigeria’s Electricity Tariff Be Reversed Increase and Removal of the Multi-Tiered Billing Band Structure

The coalition claimed that no agreement, debate, or consultation took place before the matter was announced.

The Coalition for Affordable and Regular Electricity (CARE) has denounced Ikeja Electric for imposing exorbitant prices and billing on Nigerians, charging as much as N227 per kWh.

The coalition claimed that no agreement, debate, or consultation took place before the matter was announced.

It clarified that since the power sector was privatised in November 2013, power companies, working with NERC and the Ministry of Power, have been gradually raising tariffs from N12.45/KWh to N227 or more. This represents an increase of over 1723.29% over the course of 11 years, while the minimum wage has increased by 289% during the same time.

In a statement jointly signed by National Secretary Shoyombo Monsuru and National Coordinator Chinedu Bosah, CARE pointed out that the distribution firms have also neglected to provide prepaid meters to all customers, leaving many of them open to deceptive and exorbitant projected billing.

The group emphasised that in order to oppose these absurd pricing, all electricity users in various localities must start organising resistance.

Additionally, it urged trade unions, in particular the National Union of Electricity Employees (NUEE), Trade Union Congress (TUC), and Nigeria Labour Congress (NLC), to support local campaigns against DISCO exploitation and in favour of reasonable rates.

“Some communities were on a Band C tariff of N52 kWh while others were on a Band B tariff of N68 kWh,” the document states in part.

This increase is at least 233.82%. In a nation where 133 million people live in extreme poverty, customers of electricity spend more on power than the N70,000 minimum salary as a result of this shift from Band B or C to Band A. Some towns pay up to N300 per kWh or more.

“Many people can barely afford to eat, let alone pay the absurd Band A price, therefore the cost of living issue is getting worse every day and shows no signs of abating. According to reports, the cost of electricity for many firms and industries in Nigeria is 40% or more, compared to 10% in

This exorbitant expense is a primary factor in the closure of numerous businesses or their relocation overseas, which raises the unemployment rate. Because exorbitant electricity charges impede growth and development, Nigeria’s economy requires lower electricity rates in order to expand.

“It is evident from the frantic effort to move more villages into Band A that the arrangement is not intended for affluent or highbrow neighbourhoods, as misrepresented by government and Nigerian Electricity Regulatory Commission (NERC) executives early this year. In April 2024, Mr. Adebayo Adelabu, the Minister of Power, declared that the government will place all Nigerian communities in Band A and do away with subsidies in three years.

The goal is to ensure enormous profits for the power firms and high ranking government officials. In less than six months, Ikeja Electric covertly relocated at least 179 feeders to Band A. Although Band A customers’ access to energy has improved temporarily, they are still required to turn off lights and devices even when they are not in use.

What value is there for a more reliable and enhanced electrical supply if it won’t be used due to prohibitively high and unaffordable costs? This greedy increase in power prices is a component of the larger anti-people market policies of the Tinubu-led government, which aim to enrich large corporations at the expense of labourers and the underprivileged in Nigeria.

Power companies, working with NERC and the Ministry of Power, have been steadily raising tariffs since the power sector was privatised in November 2013. This has resulted in an increase in tariffs from N12.45/KWh to N227 or more, or a total of over 1723.29% over the course of 11 years, while the minimum wage has increased by 289% during the same period. It is clear that the private electrical companies simply have profit as their top priority, and they could care less about a reliable and affordable power source for their customers.

The alliance expressed regret over distribution companies’ failure to provide prepaid meters to every customer, saying this has left many people “more vulnerable to fraudulent outrageous estimated billing.”

It stated, “Because of the excessive tariff and billing, fights and animosity have broken out amongst customers who share one prepaid meter in communities where the Band A rate is in effect.

Indeed, in several buildings, three, four, five, or more apartments share a single meter due to financial constraints. Prepaid meters range in price from N124,000 to N303,000.

“The electricity firms have also not improved or installed new transformers, poles, aluminium conductors, sub-stations, or other necessary infrastructure. In addition, towns are frequently compelled to supply transformers and other electricity equipment as a result of DISCO’s negligence.

There will never be an end to the false claims of subsidies on energy pricing, much like petrol costs. Instead, because of the Naira’s declining value in relation to the dollar, the increase in petrol prices, and other factors, there will still be a desire to raise tariffs. Because of this, NERC and the electricity industry will continue raising rates to line their endless coffers.

“There is an urgent need to re-nationalize the power sector, bring it under public ownership and subject it to democratic control and management of workers and consumers with the view to ushering in massive public investment that will drive down the cost of electricity and make it affordable for Nigerian consumers while electricity consumed by the poorest is subsidised,” the coalition stated, citing the “obvious failure of privatisation and the private electricity companies.”

“The following is demanded by the Coalition for Affordable and Regular Electricity (CARE): Eliminate the bands and ensure consistent, reasonably priced power for all Reverse electricity tariffs at the rate from before May 2024 (N48 kWh).

Provide free prepaid meters to all residents and flats. Improve the infrastructure supporting the delivery of power services.

“End privatisation of the power sector; for public ownership of the power sector under democratic control of workers and community people,” it stated.

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