Ikeja Electric Hikes Electricity Tariff Secretly, Consumer Kicks

There are strong indications that some Distribution Companies (DisCos) may have quietly effected a tariff change, contrary to the position of the Nigeria Electricity Regulatory Commission (NERC) that it has not approved any electricity tariff increase.

According to a consumer on the network of Ikeja Electric (IE), Mr. Abidemi Odeyingbo, a resident on Budland Street, Ojodu-Berger area of Lagos State, despite the clarity of NERC that it has not approved tariff increase for Discos, his experience yesterday after recharging his meter says something to the contrary.

“I recharged my meter on Ikeja Electric yesterday (January 2) at 8:15am with N5, 000 and after loading the token, I was surprised to be credited with 66 units of electricity; this is like 10 units short of what I got for the same amount on November 4, 2023 when I got 76 units for N5, 000. On November 21, 2023, I loaded N2, 000 and got 29 units of electricity.

“Definitely, Ikeja Electric has increased its tariff, except the firm wants to claim there is a fault in their system warranting this difference of 10 units,” a surprise Odeyingbo said, brandishing a copy of the payment receipt at The Nation.

When contacted for comments, the Head of Media, IE, Kingsley Okotie, resorted to querying this reporter instead, on whether it was a reaction for a story or laying a complaint on behalf of a customer.

Told that it was for Ikeja Electric’s reaction to the drop in number of electricity units purchased by a customer at same price and within a period not known that an increase in tariff was effected, Okotie became immediately aggressive towards this reporter, retorting: “See, I am not someone that can be bamboozled.

If it is to lay complaint on behalf of a customer, then the customer can get in touch with our complaint center, but if it is a reaction to your story then I cannot answer you.” All appeals to get him to comment on the alleged increase yielded no fruit. Electricity consumers are however not surprised at the development, which they described as the “way of DisCos.”

However, the NERC has insisted that there is no approval for tariff increase. “The Commission as well as the industry is responsible enough to appreciate the state of the economy, level of power generation, how Nigerians are coping and would, therefore, not make any decision that could further aggravate the challenges faced by the power sector and the economy,” NERC said in a statement on its website yesterday. Further telephone calls made to NERC’s General Manager, Communications, Dr. Usman Arabi, were unanswered as at the time of going to press.

Recall that the Minister of Power, Adebayo Adelabu, had stated in November 2023 that President Bola Tinubu stopped the implementation of a hike in electricity tariff and insisted that subsidy be paid on power consumed nationwide. In the third quarter of 2023, the federal government subsidy on electricity stood at N204.59 billion, based on a NERC report.

“Tariffs should have been raised months back, but Mr. President said until we can achieve regular and incremental power supply we can’t touch the tariff. But for political reasons and empathy, you cannot cause additional burden on Nigerians. We are talking about the exchange rate skyrocketing, galloping inflation and so many others that bring hardship to the people.

“And Mr President is trying to relieve this hardship through various forms of palliatives. So it is not politically expedient and reasonable to now implement a tariff that is more like dumping the existing tariff. We are now paying about N70 (per kilowatt-hour), and it can never be less than N130 or N140 at the exchange rate of today if we are to implement a cost reflective tariff, because part of the reasons for an increased tariff is the price of gas, which is paid in dollars,” Adelabu had explained back then.