LAGOS, Nigeria (VOICE OF NAIJA)-One week into the implementation of the new electricity tariff system, data released by the Nigerian Electricity Regulatory Commission (NERC) reveals that more than 20 percent of consumers classified as Band A lack prepaid metres.
This absence of metres, crucial for accurately gauging usage and billing, highlights a significant challenge facing consumers as they navigate the new tariff structure.
As a result, consumers will have to pay based on estimated billing, a practice criticised by both consumers and NERC for its potential for manipulation and unfair treatment of consumers.
Band A customers, who typically receive a minimum of 20 hours of electricity daily, are expected to manage their bills transparently, as per NERC guidelines.
However, this group has experienced a 230 percent tariff increase in the latest rate adjustment, raising the new rate to N225 per kilowatt-hour from N68 per kilowatt-hour.
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In response to the metering challenge faced by Band A customers, the Vice Chairman of NERC, Dr. Musiliu Oseni, has instructed Electricity Distribution Companies (DisCos) to prioritise metre installations for this customer category.
However, industry sources revealed to Vanguard that several DisCos may face delays in deploying metres due to a shortage of prepaid metres in the market.
Impacted consumers, particularly small businesses, are considering refusing estimated bills and are prepared to cease operations if DisCos disconnect them due to unpaid bills.
Meanwhile, there are indications that Organised Labour is preparing to propose a new minimum wage in response to the recent increase in electricity tariffs by the Federal Government. They argue that the 300 percent surge in electricity tariffs renders their previous wage demands irrelevant.
Last month, the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) jointly presented a minimum wage demand to the Tripartite Committee on National Minimum Wage (TCNMW) through the National Salaries, Incomes, and Wages Commission (NSIWC), the secretariat of the TCNMW.
The joint presentation contradicts the proposals made by leaders of the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) during the zonal public hearings organized by the Tripartite Committee on National Minimum Wage (TCNMW) on March 8, 2024, across four of the six geopolitical zones of the country.
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Speaking to Vanguard in confidence yesterday, one of the labour leaders who is a member of TCNMW stated: “The recent hike in electricity tariff has made nonsense of the demand we presented to the National Salaries, Incomes and Wages Commission, which is the secretariat of the minimum wage committee.
“Both centres had met last month to harmonise our different demands as seen during the public hearing and made a joint demand. But with the 300 percent increase in the electricity tariff, our demand is no longer realistic. Therefore, we plan to adjust our demand to accommodate the new tariff hike.
“As you are aware, our demand was based on the socioeconomic indices on the ground at the time we made the demand. But things have changed as typified by the 300 percent hike in the electricity tariff by the government. So, we have to adjust our demand by 300 percent in line with the electricity tariff hike.”
While the Trade Union Congress of Nigeria (TUC) initially requested a uniform amount of N447,000 across all zones, the Nigeria Labour Congress (NLC) proposed varying figures for each zone, with the highest demand being N850,000. In the South-West, NLC leaders suggested N794,000, while TUC leaders proposed N497,000.
In the South-East, the Nigeria Labour Congress (NLC) advocated for a new minimum wage of N540,000, while the Trade Union Congress of Nigeria (TUC) proposed N447,000. Conversely, South-South workers pushed for N850,000, while their North-West counterparts aimed for a minimum wage of N485,000.
Vanguard