The Tinubu administration’s decision to increase electricity tariffs for certain categories of customers has sparked widespread outrage and resistance, particularly from the National Union of Electricity Employees (NUEE). As the government pleads with the union not to embark on strike action, the case for revisiting this contentious policy grows stronger by the day.
At the heart of the controversy is the Nigerian Electricity Regulatory Commission’s (NERC) move to raise tariffs for consumers classified under “Band A” – those supposedly enjoying 20 hours of daily power supply – to a staggering N225 per kilowatt-hour from the previous N66/kWh. This astronomical hike doesn’t align with the realities on the ground, according to the NUEE.
The union’s national president, Adebiyi Adeyeye, minced no words in dismissing the 20-hour supply benchmark as “not feasible” given the current infrastructure deficits plaguing the sector. He warned that forcing electricity workers to collect the new exorbitant tariffs from underserved customers could trigger widespread crises and backlash.
Some compelling arguments from the NUEE on why the Electricity tariff hike needs a rethink:
- Lack of metering: Over 70% of the “Band A” customers targeted aren’t even metered, making it impractical to charge them based on estimated consumption.
- Power supply realities: With dilapidated infrastructure, the sector can barely sustain 10 hours of supply in most areas, let alone the 20-hour threshold used to categorize the hiked tariff band.
- Worker safety concerns: Electricity workers face threats and attacks from irate customers already. Attempting to enforce inflated bills could severely endanger their lives and livelihoods.
- Lack of consultation: The union lamented that it wasn’t carried along before the tariff increase decision, despite being a critical stakeholder.
While the government insists the move is necessary to improve supply and galvanize the economy, it must realistically assess whether raising tariffs amidst unstable supply and estimated billing is the right approach.
Energy experts have long advocated for metering and consistent supply as prerequisites for any tariff reforms. Rushing populist policies without addressing fundamental issues could prove counterproductive and exacerbate the sector’s woes.
As the face-off with labor intensifies, the Tinubu administration must demonstrate openness to reviewing the tariff hike through robust engagement with all stakeholders. Unilateral decisions disconnected from reality could spark wider unrest, derailing the economic revitalization agenda.
Nigerians desire affordable and reliable power, not haphazard tariff shocks that outpace service delivery. The government must tread cautiously and prioritize pragmatism over populism on this sensitive issue.
Reference
Tariff hike: FG begs workers as electricity union insists on strike published in Punch By Dare Olawin