NUEE Tasks Power Minister on Consumers priority, Faults Plan On Tariff Increase, Demands Equity in Power Supply, Billing

The National Union of Electricity Employees (NUEE) has opposed the federal government’s proposal to regularize electricity tariffs targeted at addressing disparities in the current billing system as well as encouraging investment in the power sector.

In a swift reaction, NUEE faulted the move, asserting that the plan has met significant backlash from consumers and workers of the National Union of Electricity Employees (NUEE).

The Head, Information and Research of the National Union of Electricity Employees (NUEE), Comrade Ugboaja Joseph Emeka echoed these sentiment on Friday in Lagos

He expressed frustration over the government’s lack of responsiveness to the challenges facing citizens. He also criticized the past tariff hikes as unjustified, stating that the proposed increase would exacerbate the financial burdens on individuals and businesses already grappling with high living costs.

The Minister of Power, Adebayo Adelabu, had on Thursday in Abuja revealed the current position during the ongoing public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan.

Adelabu had said the government is considering this option over the slow pace of migration to Band A customers, which he attributed to the reluctance of Distribution Companies to make the necessary investments.

The plan aims to align tariffs for customers in Bands B and C with the #206 per kilowatts – hour rate currently charged to Band A customers, who represent about 15% of the 12.82 million electricity consumers in Nigeria.

The initiative comes as the government acknowledges a staggering debt of over #4 trillion owed to 24 Power generation companies and 11 electricity distribution companies in subsidy payments.

Adelabu stated that the slow transition of customers to Band A tariffs is due to the lack of investment from the distribution companies. He called for a restructuring of the tariff bands to reduce the existing disparities, arguing that the differences are unfair and must be addressed.

Under the current system, Band B customers, who receive 17 to 18 hours of electricity supply, pay N63 per kilowatt – hour, while Band A customers, who enjoy only two hours additional hours, pay #209 per kilowatt – hour

Meanwhile, consumers and workers in the sector have voiced their concerns through the National Union Of Electricity Employees (NUEE), insisting that any tariff is insensitive given the ongoing instability in the electricity supply.

Adelabu had emphasized the necessity of regularizing tariffs to create a fairer pricing model.

As discussions around the proposed electricity tariff adjustment continue, the tension between government policies, consumer needs and sector workers security remains a critical issue in the ongoing quest for a sustainable power sector in Nigeria.

Meanwhile the move has also stirred up questions on if the tariff increase is actually a priority in the power sector as well as who is actually saddled with the responsibility of electricity regulation in Nigeria.

On a disparity level, the statement from NUEE holds that “it is a critical stakeholder in the Power Industry.

“We cannot sit on the fence without interrogating this and proving the best solution to this issue.

“Rather than prioritizing a tariff review, shouldn’t the Minister focus on improving the overall efficiency and reliability of the power sector?

“The sector’s financial woes, including a shortfall of N1.6 trillion in wholesale tariffs, are undeniable. However, passing on the costs to already burdened consumers may not be the most effective solution.

‘It’s appalling that the Minister appears more interested in increasing the poverty level rather than alleviating the suffering of the masses. By advocating for a discriminatory tariff, the Minister is essentially penalizing the most vulnerable members of society. This move will disproportionately affect low-income households, exacerbating the existing economic inequalities.

“Nigerians deserve a reliable and efficient electricity supply system that supports economic growth, improves quality of life, and enhances overall well-being. Instead of a tariff increase, the Minister should prioritize measures to increase power generation, improve transmission infrastructure, and ensure affordable tariffs for consumers.

“The Honourable Minister of Power must reconsider his priorities and work towards finding solutions that benefit all Nigerians, rather than placing an undue burden on them.

“Whereas the power sector has been privatized for over 13 years. That contemplation to increase tariff is supposed to consummate with the services rendered. The statement reads.