Controversy is trailing the plans by the Distribution Companies (Discos) and the Nigeria Electricity Regulatory Commission (NERC) to increase electricity tariff by 45 per cent.

Specifically, as the Discos and NERC are insisting on hiking electricity tariff, the consumers have vowed to resist the planned decision.

Some consumers who spoke with The Guardian believed that the electricity firms were yet to provide the required supply for the citizenry, saying, rather than finding the best strategy to increase power supply, the electricity distribution companies (Discos) decided to add to the challenges facing Nigerians by increasing tariff.

Also, they said that there is no correlation between the quality of service delivery, electricity supply and the increment of tariff.

The consumers are resisting since there is no significant increase in amount of power supply as promised to compliment the situation rather the existing capacity dropped drastically by more than half of what it used to be.

It will be recalled that electricity distribution companies had planned to increase tariff but a recent verdict by Federal High Court in Lagos nullified the 45 per cent tariff increase.

The court had ruled that the tariff increment was carried out without following due procedures.

The court declared that the increment should be set aside, describing it as procedurally irregular.

But, the investors said that any reduction in the electricity rates by 45 per cent would lead to a total collapse of the sector, which would further plunge the country into almost total blackout.

The Executive Director, Association of National Electricity Distributors, Sunday Oduntan, said that any reversal in electricity tariff will increase the over N300 billion funding gap, which operators in the sector are currently grappling with.

He said that if the court ruling on the reversal of tariff were implemented, the outcome on the sector and the overall economy would be more severe than people imagined.

Reacting to the issue, President, Nigerian Labour Congress (NLC), Ayuba Wabba, described the increase as illegal, unfair, unjustifiable and a further exploitation of the already exploited Nigerians.

He then urged NERC and Discos to obey the ruling and revert to the old rates without further delay.

“We demand that NERC and DISCOs observe all conditions as contained in the sales agreement before any increase is made,” he added.

Lamenting the increase, Ngozi Uzoma, a customer with Ikeja DISCO, who operate a hair dressing shop at Ago Okota, Lagos stated: “My problem with this increase is that the crazy bills have not been dealt with. So further increase, to me means we should be prepared for more crazy bills. My area has not been metered”.

Another consumer, a pure water manufacturer, Tony Madu said: “Once the cost of production increases, even by a little percentage, the increment will be transferred on the price. This may lead to increase in the price of pure water from the current N10 per sachet to N20”.

He therefore called on the Federal Government to intervene and ensure the Generation and Distribution companies concentrate on improving regular power supply in the country.

The Acting Chairman/Chief Executive Officer of NERC, Dr. Anthony Akah, while reacting to the court judgement, said the Commission respects the court decision, but dissatisfied because it represents the reversal of the commercial foundation upon which contracts for gas, hydro, coal and solar feedstock for the production of electricity have been predicated.

He said that the ultimate destination of a commercialised electricity market is to achieve stability and adequacy in the supply of electricity to satisfy the yearning of Nigerians for adequate, safe and reliable electricity supply.

He described the judgment as a setback to the progress made so far in the electricity sector. “Therefore, we will challenge this decision. We understand that private power production and distribution is a relatively new in Nigeria and that development such as this court ruling must be seen in that context as the laws begin to face judicial tests of interpretations. We believe that ultimately everybody and all institutions will come to better understanding of the values of the choice we have made as a nation to privatise the power sector”, he said.

He therefore urged the investors, as well as the customers in the electricity market not to panic as “we seek a resolution within the ambit of the established laws”.