An Abuja-based energy consultant, Mr. Dikedinigbo Ejike, has appealed to Nigeria Electricity Regulatory Commission (NERC) to review and approve the tariffs of all 12 electricity distribution companies (DisCos) at the same time.
This, he said, is essential for NERC to maintain its reputation as a transparent and impartial regulator.
Ejike’s appeal comes after NERC approved a new tariff structure for Aba Power, Nigeria’s 12th DisCo, which took effect on January 2, 2025.
Speaking with journalist in Abuja on Wednesday on the new tariff structure for Aba Power, the energy expert noted that NERC had previously approved a 300% tariff increase for Band A customers in the other 11 DisCos, but later reduced it to N209/kWh.
In contrast, Aba Power was allowed to adjust its tariff by 50% for Band A customers just eight months later, without any official explanation for the disparity.
Ejike’s concerns highlight the need for consistency and transparency in NERC’s decision-making process. As the regulatory body responsible for overseeing the electricity sector, NERC must ensure that its actions are fair, impartial, and in the best interest of all stakeholders.
“NERC has been run professionally for most of its years of existence, and so should not give the impression that it favours some electricity companies more than others,” he said.
According to him, since Aba Power and the other DisCos operate in the same economic environment and under the same “law, rules and regulations, it should have been treated the same way as others for reasons of transparency, probity, and justice.
“Aba Power, which faced acute injustice under a previous government for two decades, must have lost a fortune by having its tariff approved almost a year later than those of its competitors who interestingly have been receiving subsidies worth trillions of naira since the privatization of the country’s 11 DisCos inherited from the Power Holding Company of Nigeria (PHCN) in 2013).”
Ejike argued that if NERC had approved the Aba Power new tariff alongside those of the other Discos last April 3, “communities, businesses, and individuals in the nine local government areas (LGAs) in Abia State covered by the country’s newest DisCo would not have spent so much money during Christmas and New Year without a provision for the new tariff, though it remains far the cheapest in Nigeria.”
The engineer noted that the late approval of the new tariff for Aba Power DisCo almost on the last day of 2024 made it very difficult for the company to sensitize its customers on the increase.
“Aba Power had only two or three days to inform and enlighten its customers regarding the change,” he lamented. “And this was during the New Year holidays!”
Ejike, however, lauded Aba Power for becoming the first DisCo in Nigeria to provide uninterrupted power since last month.
“This firm, commissioned only last February 26, has demonstrated not just promise but also strength, despite the excruciating gas supply shortages it has experienced since commissioning.”
