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South East industrialists condemn 95% electricity tariff hike

By on March 14, 2015

Njiko Igbo Forum, a socio-political group affiliated to Ohanaeze Ndigbo, has raised the alarm over the recent 94.66 per cent increase in energy charges for industries in the South East.

The 99.66 per cent increment in industrial tariff (code D2) was recently approved for the Enugu Electricity Distribution Company by the Nigerian Electricity Regulatory Commission.

Tariff code D2 is the charge for large scale industries such as metal fabrication companies and other businesses which make use of dedicated transformers and maximum demand meters.

EEDC is the distribution company which covers the South East states of Enugu, Anambra, Abia, Imo and Ebonyi and as a result, the concerned industries in the zone have seen their energy charges increased by 94.66 per cent.

The new tariff regime came into effect on January 1, 2015.

However, stakeholders in the South East, including Njiko Igbo, have raised the alarm at the rate of the tariff increase, as well as the huge disparity in the increment approved for EEDC and the other distribution companies in other parts of the country.

A document obtained by our correspondent shows that when the tariffs to be collected by all the distribution companies in all parts of the country were increased, Jos and Enugu got the highest percentage increments of 103.46 per cent and 94.66 per cent, respectively.

The percentage of increment in the tariff to be collected by the other distribution companies are – Abuja, 58.69 per cent; Benin, 60.63 per cent; Eko, 22.42 per cent; Ibadan, 47.73 per cent; Ikeja, 28.83 per cent; Kaduna, 40.80 per cent; Kano, 47.73 per cent; Port Harcourt, 77.64 per cent, and Yola, 82.38 per cent.

The National President of Njiko Igbo, Reverend Okechukwu Obioha, said the increment would discourage private sector investment, and as a result destroy the economy of the South East.

Speaking to our correspondent, the Njiko Igbo leader expressed concerns about the development.

He said, “Njiko Igbo noticed the 94.66 per cent increment and we have been crying out.

“It is very alarming, very disturbing. We see it as a way of getting us back into slavery again. They are robbing the Igbo.

“We cannot understand – what beats our imagination, what we cannot understand is why is this tariff increase coming now?”

The Njiko Igbo leader noted that the development was even more disturbing since the Chief Executive of NERC, Dr. Sam Amadi, and the Minister of Power, Prof. Chinedu Nebo, are both Igbo.

“Why will this be so? The helmsman of the NERC, Dr. Sam Amadi, is an Igboman, the power minister, Prof. Chinedu Nebo, is an Igboman.

But the EEDC said that the increment was aimed at providing better services.

The Head, Communications, EEDC, Mr. Eugene Anionwo, while responding to the concerns raised by Njiko Igbo and other stakeholders in the South East, explained that the increment in energy charges would ensure that electricity consumers receive better service and more reliable power supply, by encouraging power generation, distribution and transmission companies in the country to make required investments.

He noted that the tariff was cost-reflective, adding that it is reviewed and set by NERC in line with the Act setting up the regulatory body.

According to Anionwo, EEDC understands the consumers’ complaints and is appealing to its customers for understanding and cooperation.

 

[Punch]