THE high rate of electricity tariff in Nigeria and the pattern of frequent review by the federal government have
come under strong criticism from the leadership of influential Nigeria Labor Congress.
Describing it as`incessant and exorbitant’ the body made its position known in a statement issued and signed by its president, Mr. Abdulwahed Omar. According to the statement, an arbitrary increase was effected in 2012, when the tarrift shot up from N225 to over N700.
“This review whether done suddenly or in advance is without justification or rationale and stand condemned as it will negate whatever gains expected to be recorded by the much vaunted reform in the power sector,’’ it said.
The statement stated that the multi-year tariff structure by the Nigerian Electricity Regulatory Commission (NERC) only protected the interest of investors in the power sector.
According to the statement, the tariff has little or no consideration for consumers, most of whom are poor and incapable of paying. It stated that the tariff was exploitative and saddening, noting that the reviews were not accompanied by commensurate improved services.
“If anything, electricity service delivery has plummeted over the years with consumers compelled to pay exorbitant tariff rates for incompetence, poor service and fraud. “Judging from the yearly percentage increase, it is predictable that less than 10 per cent of the present consumers will be able to pay these outrageous tariffs in the next few years.
“The consequences of structuring electricity tariffs that are unreasonable and not affordable have grave implications for the economy and the people.