Hike in electricity tariffs to raise funds for struggling DisCos – Falana
By Innocent Raphael
Human rights advocate, Femi Falana (SAN), has berated the Federal Government, and the Nigerian Electricity Regulatory Commission (NERC), for planning to expand electricity tariff, alleging that it was a move to raise funds for financially unstable Distribution Companies (DisCos).
Appearing on Channels Television’s Sunday Politics, Falana argued that the recent tariff increase for Band A consumers lacks justification under the Electricity Act of 2023.
He vowed to pursue legal action to address the grievances of Nigerians affected by the hike.
Falana criticized the government for eliminating electricity subsidies in 2022 and shifting the burden onto citizens through the new tariff hike, attributing it to mismanagement within the electricity sector.
NERC’s decision on April 3, 2024, to raise electricity tariffs for customers receiving 20 hours of power daily, categorized under Band A, has sparked widespread criticism, especially given the immediate impact on consumers amid existing economic challenges.
In response however, Minister of Power Adebayo Adelabu claimed the tariff hike would only affect around 1.5 million consumers out of 12 million in the sector.
Falana dismissed the notion of electricity subsidies, alleging that the government aims to generate funds for financially strained electricity distribution companies (DisCos).
Falana said, “Under that law, there are certain steps to take and we are going to embark on those steps tomorrow (Monday) which is to raise serious objections with respect to the impunity that has characterised the recent increase.
“At the appropriate time if there is no response, we will have to go to court because the government had warned, the minister had warned that the increase this time around will only fetch the government or the discos N1.6trn whereas the destination is N3trn.
“So, the poor people that he (the minister) is talking about, the other bands, very soon, the government is going to extend the increases to them so that the N1.4trn the minister is talking about will be recovered.
“They (the government) are increasing tariff to assist the cash-strapped discos majority of which have now been taken over by the banks and AMCON, and the banks and AMCON have no competence to run electricity companies.”
Falana further accused the government for its insensitivity towards Nigerians, who are still reeling from the economic repercussions of the removal of petrol subsidies and the collapse of foreign exchange mechanisms, both policies implemented during the President Bola Tinubu administration, leading to an unprecedented rise in living costs.
