The Trade Union Congress (TUC), electricity workers, and consumers have criticized the 8.1% reduction in the tariff for Band A customers, calling it 'negligible' and demanding its reversal. They argue against the segregation of electricity users, advocating for a uniform tariff.
In contrast, the House of Representatives and Center for the Promotion of Private Enterprise (CPPE) CEO Muda Yusuf view the reduction as a positive step. NERC directed the 11 electricity Distribution Companies (DisCos) to reduce Band A tariff from N225/kWh to N206.8/kWh for the current month, citing the stability of the Naira against foreign currencies.
The move has faced opposition, with the TUC demanding a return to the pre-April tariff of N66/KWh and urging NERC to engage with stakeholders as mandated by the Electricity Act. Similarly, the National Union of Electricity Employees (NUEE) called for a total reversal of the tariff for Band A customers.
Consumer group Association for Public Policy Analysis (APPA) questioned the impact of the new rate, stating that the reduction from N225 to N206.80 does not make a substantial difference. They emphasized the need for policies that would stimulate manufacturing and reduce the cost of goods.
APPA's National President, Princewill Okorie, called on the government to reconsider its policy on gas, suggesting that domestic gas be made available to generation companies at reasonable rates. He also highlighted the need for the Federal Government to settle the N47 billion owed by its Ministries, Departments, and Agencies to the DisCos.
While the House of Representatives welcomed the tariff reduction, it acknowledged that more action is needed. A public hearing with stakeholders in the power sector and Organised Labour has been scheduled to address lasting solutions to frequent tariff increases by NERC and DisCos.
The DisCos have assured customers of continued improvement in service delivery, with Ikeja Electricity (IE) and Abuja Electricity Distribution Company confirming the implementation of the tariff reduction for Band A customers.
