Category Archives: NERC

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Drama As Electricity Workers Lock Out Minister Over Tariff Hike

Drama As Electricity Workers Lock Out Minister Over Tariff Hike

Adebayo Adelabu, Ministry of Power, NERC, Nigeria news, NUEE, SSAEAC, TCN

There was mild drama on Monday at the Ministry of Power headquarters in Abuja as the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC) stopped business activities there.

Members of NUEE and SSAEAC also locked out the Minister of Power, Adebayo Adelabu, and other ministry workers, preventing them from accessing the Power House building in the Maitama District of Abuja.

The acting General Secretary of NUEE, Igwebike Dominic, said the power ministry shutdown would continue until the government listened to the union’s demands or called a meeting to address the issues.

“The shutdown of Power House is going to continue until they hold a meeting with the unions or meet the demands written in our letter to the minister,” he told Punch.

In the letter to Adelabu, jointly signed by both unions and dated May 20, 2024, the associations stated that the government took a unilateral and detrimental decision to liquidate TCN without consulting stakeholders.

The letter reads, “We are taken aback by the utmost disregard for the critical stakeholders in the power sector by you and your agency’s unilateral and detrimental decisions in the sector.

“We believe that all agencies, under your ministry, should key into your agenda and set goals by extension to the vision of this administration in seeing to a regular and sustainable power supply in the country. So, the disruption being engineered by NERC in the sector is not surprising, as there is no known agenda or vision for the power sector by your administration one year after the resumption of office.

“The unfortunate scenario playing out in the power sector points to the fact that you administer the sector like a personal estate with no consideration for the welfare and survival of the workers and the sector in general.”

They accused the minister and the Nigerian Electricity Regulatory Commission (NERC) of running the sector without recourse to critical stakeholders in the power industry since his assumption of office a year ago

The unions stated that the unilateral tariff increase to about 300 per cent was done without stakeholders’ dialogue, adding that the proposed review of workers’ salaries does not receive the desired considerations.

They described the move as provocative and unacceptable and vowed to vehemently resist any attempt to cede those infrastructures to cronies for political patronage.

They said: “The mischievous deduction of eight per cent of the revenue generated as technical losses from TCN is a political calculation to blackmail the company and its management to make it look inefficient is disheartening and would, in the long term, hurt the entire electricity value chain. This is highly unacceptable and cannot be sustained.

“The vexatious order from NERC on a monthly deduction of N2bn from the account of TCN is unrealistic and an attempt to run TCN down, portray the management as incompetent and take advantage of the failures for selfish political gains. We want a justified reason for such a humongous and unrealistic deduction.

“The illegal deduction of 46.7 per cent from TCN revenue (not even profit) for project execution for Discos; are the privatised companies not owned by private entities? What system of privatisation are we adopting? Our findings revealed that all these obnoxious orders from NERC are a conspiracy to grind the operations of TCN and then liquidate it. These are to prepare enough ground to unbundle it for selfish political gains by a few people.”

Tariff Hike Reversal

The unions also asked NERC must reverse the unilateral tariff increase implemented without consulting with critical stakeholders in the sector

“NERC must reverse the unilateral tariff increase implemented without consulting with critical stakeholders in the sector. The salaries of the workers in the sector must be reviewed.

“All obnoxious deductions from TCN must stop forthwith, and all deducted funds must be remitted back to TCN with immediate effect. Why these deductions, when revenue is required to strengthen the already aged and weak network that will guarantee stable and reliable energy supply?

“Henceforth, all staff in the sector will have electricity rebates (units) allocated to them as a standard practice. Gencos must not be given revenue generated from TCN and Discos until they allow the unionisation of their companies as provided by the Labour Act,” they noted.

Power Minister Reacts

In his reaction, the minister, through his media aide, Bolaji Tunji, told the newspaper that the ministry was handling the issue and that the permanent secretary would meet with unions to address their concerns.

The post Drama As Electricity Workers Lock Out Minister Over Tariff Hike appeared first on Naija News.

NLC, TUC Shut Down NERC, Disco Offices In Jos

NERC, Nigeria news, NLC, TUC

Members of the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), on Monday prevented workers from accessing the offices of the Jos Electricity Distribution Company as well as that of the Nigerian Electricity Regulatory Commission (NERC) in Jos, Plateau State.

The protesting NLC and TUC members blocked the entrance of the headquarters of Jos Electricity Distribution Company in Jos, as well as the NERC offices located at the Gold and Base axis in Jos.

This development left workers of the organization stranded and unable to carry out their official assignments.

The State Chairman of the NLC, Eugene Mangji, who led the union members, told The PUNCH in Jos that the action was in compliance with the directive of their national secretariat aimed at forcing the government to reverse the recent hike in electricity tariff.

“We have shot down the NERC office at Gold and Base. Right now, we are the JED headquarters at the Ahmadu Bello Way. We will continue until the right thing is done,” the NLC chairman stated.

Naija News recalls that organized labour had announced plans for a nationwide picket of the offices of the Nigerian Electricity Regulatory Commission (NERC) and various electricity distribution companies (DISCOs) across the country.

The action, which commenced on Monday, May 13, 2024, is part of a broader protest against the recent hike in electricity tariffs.

This decision follows a directive issued after a crucial meeting of the NLC’s Central Working Committee (CWC) on April 30, 2024.

The post NLC, TUC Shut Down NERC, Disco Offices In Jos appeared first on Naija News.

Tariff Hike: NLC To Shutdown NERC, DisCos Offices Nationwide

Discos, Electricity Tariff Hike, NERC, Nigeria news, NLC, Showdown

The Nigeria Labour Congress (NLC) has announced plans for a nationwide picket of the offices of the Nigerian Electricity Regulatory Commission (NERC) and various electricity distribution companies (DISCOs) across the country.

Naija News reports that this action is set for Monday, May 13, 2024, as part of a broader protest against the recent hike in electricity tariffs.

This decision follows a directive issued after a crucial meeting of the NLC’s Central Working Committee (CWC) on April 30, 2024. Chris Uyot, the NLC Acting Secretary-General, confirmed the move in a press statement released on Friday.

“The nationwide picketing is slated for Monday, 13 May 2024,” Uyot said.

The Labour movement’s contention with NERC comes after the regulatory body announced an increase in electricity tariffs for Band A customers, which has been met with widespread criticism from various stakeholders, including the House of Representatives and the Nigerian Bar Association.

The new tariff regime saw prices for Band A customers rise to ₦225 per kilowatt-hour, up from the previous ₦68/kWh.

Organised labour has argued that the hike not only violates the procedural norms set by law but also severely impacts the economic welfare of millions of Nigerians.

In response to these developments, the NLC had previously issued an ultimatum to NERC, demanding a reversal of the tariff increase by May 12, 2024, or face mass action.

The unions have stressed that the increase in tariffs is untenable in the current economic climate and exacerbates the hardships faced by the average Nigerian. With the ultimatum set to expire a day before the planned picket, the stage is set for a significant showdown between labour unions and regulatory authorities.

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Why We Approved Reduction In Electricity Tariff Of Band A Customers – NERC

Band A Customers, Discos, Electricity Tariff, Headlines, NERC, Nigeria news

The Nigerian Electricity Regulatory Commission (NERC) has confirmed that it gave approval to the Electricity Distribution Companies (Discos) to implement a reduction in the tariff of customers on Band A.

NERC gave the confirmation in a statement on Monday released via its website.

The Commission added that it granted approval for the reduction in electricity tariff for the affected customers due to the appreciation of the Naira in the foreign exchange market.

As earlier reported by Naija News, the eleven Discos in the country, cut the tariff for Band A customers from 225/kWh to 206.8/kWh, which represents approximately 8.1% reduction.

The NERC statement on the development reads: “Pursuant to the tariff methodology adopted by the Nigerian Electricity Regulatory Commission, a revised tariff order covering the month of May 2024 has been issued by the Commission to the eleven (11) electricity distribution companies.

“The Commission has considered changes in the macroeconomic parameters over the preceding month of April 2024 and especially the appreciation of exchange rates – consequently the Commission has approved a downward review of end-user tariffs for Band “A” customers from NGN225/kWh to NGN206.8/kWh.

“The Commission reaffirms its commitment to providing a balanced and effective regulatory regime serving the needs of the Nigerian Electricity Supply Industry.”

The post Why We Approved Reduction In Electricity Tariff Of Band A Customers – NERC appeared first on Naija News.

‘Why Discos Reduced Electricity Tariff For Band A Customers’

Band A Customers, Discos, Electricity Tariff, Headlines, NERC, Nigeria news

The Nigerian Electricity Distribution Company (NERC) has confirmed the reduction of electricity tariffs for Band A customers across the eleven Distribution Companies (DISCOS) in the country.

The NERC stated that the reduction in tariff is based on its directive.

Naija News recalls the electricity distribution companies, on Monday, started announcing the slash in the electricity tariff for band A customers to 206.80 per Kilowatt-hour from the previous price of N225 per kilowatt-hour.

The disco stated that the implementation of the new tariff commenced on Monday, May 6, 2024.

Reacting to the development, the NERC Commissioner of Legal, Licensing and Compliance, Dafe Akpeneye, was quoted by Daily Post to have confirmed that the directive to reduce the tariff of Band A customers originated from the commission.

He added that all DISCOS are expected to comply, and the statement would be published on NERC’s website later in the day.

“The order came from the Commission. It will be published on the NERC website later in the day”, he said.

Meanwhile, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) have urged the Federal Government through the Nigerian Electricity Regulatory Commission (NERC) and Power Sector operators to promptly reverse the recent hike in electricity tariffs within one week.

In a joint address delivered last Wednesday in Abuja to commemorate the 2024 Workers’ Day, the presidents of both unions, Joe Ajaero and Fetus Osifo, expressed their discontent with the country’s inconsistent power supply, which is adversely impacting its economic progress.

They emphasized that any nation that fails to effectively and efficiently manage its energy resources is bound to face inevitable destruction.

The post ‘Why Discos Reduced Electricity Tariff For Band A Customers’ appeared first on Naija News.

NERC Unbundles TCN, Establishes New System Operator

Headlines, NERC, Nigeria news, NISO, TCN

The Nigerian Electricity Regulatory Commission (NERC) has unbundled the Transmission Company of Nigeria (TCN).

The commission made this known in a circular dated April 30, 2023, and jointly signed by its Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni, respectively.

NERC said following the unbundling of the TCN, it has established the Nigerian Independent System Operator of Nigeria Limited (NISO). It noted that by this order, TCN is expected to transfer all market and system operation functions to the new company.

The commission had previously issued Transmission Service Provider (TSP) and System Operations (SO) licences to TCN, in accordance with the Electric Power Sector Reform Act.

However, the Electricity Act 2023, which came into effect on June 9, provided clearer guidelines for the incorporation and licensing of the independent system operator (ISO), as well as the transfer of assets and liabilities of TCN’s portion of the ISO.

Therefore, in the circular, the commission ordered the Bureau of Public Enterprises (BPE) to incorporate, unfailingly on May 31, a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020.

The company, NERC said, is expected “to carry out the market and system operation functions stipulated in the Electricity Act and the terms and conditions of the system operation licence issued to TCN.

It said: “The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (NISO).

“Citing the object clause of the NISO’s memorandum of association (MOU) as provided in the Electricity Act, NERC said the company shall “hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify.”

NERC said the new ISO will also be responsible for negotiating and entering into a contract for the procurement of ancillary services with independent power producers and successor generation licensees.

The Commission added that it will generally carry out market and system operations functions as specified under the Electricity Act and the terms of its licence in the interest of market participants and system users.

NERC said the company is expected to carry out all market and system operation-related contractual rights and obligations handed over by TCN.

The post NERC Unbundles TCN, Establishes New System Operator appeared first on Naija News.

NLC, TUC Issue Ultimatum To FG To Reverse New Electricity Tariff

Electricity Tariff, NERC, Nigeria news, NLC, TUC

The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) have urged the Federal Government through the Nigerian Electricity Regulatory Commission (NERC) and Power Sector operators to promptly reverse the recent hike in electricity tariffs within one week.

In a joint address delivered on Wednesday in Abuja to commemorate the 2024 Workers’ Day, the presidents of both unions, Joe Ajaero and Fetus Osifo, expressed their discontent with the country’s inconsistent power supply, which is adversely impacting its economic progress.

They emphasized that any nation that fails to effectively and efficiently manage its energy resources is bound to face inevitable destruction.

The labour unions noted, “One of the pivotal factors constraining our nation is our glaring incompetence in managing this sector for the collective welfare of our citizens.”

The labour unions expressed the view that “Power, regardless of its source, remains paramount in kickstarting any economy, while oil and gas are indispensable for robust energy success in every country.”

The duo emphasized the utmost importance of the government working hand in hand with the citizens to create systems that guarantee accessible energy for every Nigerian.

As per their statement, the power sector’s challenges have persisted for more than ten years since its privatization.

“The reasons are glaringly evident. As long as those who sold the companies remain the buyers, Nigerians will continue to face formidable challenges in the power sector.

“It is unethical to force Nigerians to pay higher tariffs for non-existent electricity. Estimated billing is an extortion and a daylight robbery against Nigerians,” the duo said.

The post NLC, TUC Issue Ultimatum To FG To Reverse New Electricity Tariff appeared first on Naija News.

BREAKING: House Of Reps Stops Electricity Tariff Increase

Headlines, house of representatives, NERC, Nigeria news

The House of Representatives on Tuesday directed the Nigeria Electricity Regulatory Commission (NERC) to stop the introduction of the new electricity tariff for Band A customers.

Naija News reports that the resolution was approved by the lower legislative chamber during its plenary session on Tuesday, subsequent to the enactment of a motion addressing pressing public concerns.

The proposal was put forth by Nkemkanma Kama, a legislator representing the Labour Party (LP) from Enonyi state.

Recall that the Minister of Power, Adebayo Adelabu, had warned that there will be a total blackout in Nigeria in the next three months, if the proposed electricity tariff hike is not implemented.

The minister stated this yesterday in Abuja when he appeared before the Senate Committee on Power at an investigative hearing over the recent electricity tariff hike by NERC.

This is after the Senate committee, led by Senator Enyinnaya Abaribe, rejected the new tariff regime.

Adelabu warned that the entire sector would be grounded if the Commission fails to increase the tariff.

Adelabu said, “The entire sector will be grounded if we don’t increase the tariff. With what we have now in the next three months, the entire country will be in darkness if we don’t increase tariffs.

“The increment will catapult us to the next level. We are also Nigerians, we are also feeling the impact.”

He said $10 billion yearly for the next ten years is needed to revive the nation’s power sector and nip in the bud the challenges bedevilling it.

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Breaking: NERC Deregulates Meter Prices, Announces New Price For Single Phase, Three Phase Pre-paid Meters

Headlines, MAP, National Mass Metering Programme, NERC, Nigeria news, Prepaid Meter

The Nigerian Electricity Regulatory Commission (NERC) has approved the deregulation of meter prices for DISCOS under the Meter Asset Provider (MAP) scheme.

The Commission also adjusted the price of a single-phase meter from N58,661.69 to N81,975.16 and that of a three-phase meter from N109,684.36 to N143,836.10.

The adjustments were contained in the ORDER NO: NERC/2024/040 that the commission’s Chairman, Engr. Sanusi Garba and Commissioner of Legal and Licensing Compliance, Barrister Dafe Akpeneye, issued on Monday.

The title of the order is “The deregulation of meter prices for meters deployed under the Meter Asset Provider Scheme.”

The statement noted that with effect from 1 May 2024, all prices of meters under the MAP scheme shall be determined through a competitive bidding process with customers provided with a choice of authorised vendors.

The NERC statement said “the Meter Asset Provider and National Mass Metering Regulations (the “Regulations”) provide for the metering of end-use customers of successor electricity distribution licensees (“DisCos”). Section 8(1 )(c) of the Regulations provides that “the cost of single phase and three phase meters for MAPs, inclusive of all other associated costs of installation and warranties shall continue to be at the regulated rates approved by the Commission.”

NERC said the Meter Asset Providers ((MAPs) and Local Meter Manufacturers Associations (LMMAs) have requested a further review of meter prices in consideration of significant changes in NGN/USD foreign exchange rate and inflation rate since the last price review in September 2023 and the significant changes in these macroeconomic variables has constrained their ability to supply meters at the approved regulated price.

The commission has, therefore, noted the need for the efficient pricing of meters to respond more quickly to changes in macroeconomic parameters, particularly exchange rates.

According to them: “The Commission has further taken cognisance of the constraints/challenges faced by MAPs and LMMAs and therefore approved the deregulation of prices of meters deployed under the MAP scheme with effect from 1 May 2024.”

NERC said, “The commission hereby orders: with effect from 1 May 2024, all prices of meters under the MAP scheme shall be determined through a competitive bidding process with customers provided with a choice of authorised vendors.

“The combined effects of sections 8(1 )(c), 8(1 )(d), 16(1 )(h), 31 and 32(1 )(b) of the Regulations on the regulated pricing of meters deployed under the MAP scheme is hereby derogated.

“The cost of prices of meters deployed under the MAP scheme is HEREBY DEREGULATED to enable end use customers acquire meters from MAPs.”

NERC noted that the choice is based on competitive open market prices determined from transparent bidding frameworks.

The order noted that all MAP permits holders are henceforth eligible to provide services and transact for the provision of meters and metering services with any DisCo in the Federal Republic of Nigeria with their existing permit.

According to the commission, the lifting of the restriction on permitting to operate in all DisCos is subject to the mandatory requirement for MAPs to comply with the associated DisCo specific requirements/specifications.

The commission added that all DisCos shall ensure the effective and seamless integration of smart meters deployed by MAPs with the DisCo’s head-end systems and meter data management systems.

It further noted that all DisCos shall provide a publicly accessible online portal on their website where prospective MAPs can view the DisCo’s technical specifications and commercial terms for participation as a MAP within its network area.

NERC disclosed that all DisCos are required to conduct a thorough test and confirmation of specifications for new meters proposed by a prospective MAP and conclude no later than 20 working days from the date the proposed MAP fulfils all the requirements specified on the online portal to participate within its network area.

The post Breaking: NERC Deregulates Meter Prices, Announces New Price For Single Phase, Three Phase Pre-paid Meters appeared first on Naija News.

Lawyer Drags NERC, AEDC, AGF, Minister Of Power To Court Over Electricity Tariff Hike

AEDC, Electricity Tariff Hike, Joe Agi, NERC, Nigeria news

A Senior Advocate of Nigeria (SAN), Joe Agi, has taken legal action against the National Electricity Regulatory Commission (NERC) and Abuja Electricity Distribution (AEDC) for allegedly raising his electricity tariff by 230 per cent.

Naija News understands that the case is currently being heard by Justice Inyang Ekwo of the Federal High Court in Abuja, where Agi is seeking the protection of his fundamental rights.

In his application, the senior lawyer asks the court to declare that the new tariffs and the hours of supply violate the Electricity Act of 2023 and Section 42 of the 1999 Constitution.

The applications list NERC, the Minister of Power, Adebayo Adelabu; the Attorney-General of the Federation (AGF), Lateef Fagbemi, and AEDC as the first to fourth respondents, respectively.

In the attached affidavit submitted with the lawsuit, the attorney stated that he purchased 682kwh of utility from the AEDC on both March 23 and April 3, for a total of N50,000.

Furthermore, Agi declared that on April 6, he made another N50,000 utility purchase, but this time the value of the purchase was reduced to 206.7kwh.

He expressed his concern regarding this unexpected change but later discovered that the NERC and AEDC had implemented a system known as “bands” in the country. Under this system, NERC issued the April 2024 Supplementary Order to the Multi-Year Tariff Order 2024.

“That from the tariffs shared, the 1st and 4th respondents (NERC and AEDC) increased my tariffs by 230%, whereas others had theirs increased by 236%,177% and some others 0% in Nigeria.

“The tariffs are discriminatory and the hours of supply are discriminatory between consumers and consumer categories and should be cancelled,” the SAN prayed the court.

Agi criticized the statement made by NERC’s chairman, Musiliu Oseni, on April 1st, where he stated that “only 15% of the electricity consumers in the country who consume 40% of the nation’s electricity are the ones affected.”

In Agi’s view, this directive creates a distinction between the 15% and the remaining 85% of consumers in Nigeria, which he considers discriminatory.

He argued that the use of US Dollars to determine tariffs in Nigeria is unnecessary and goes against public policy.

Consequently, the applicant requested “a declaration that the NERC Supplementary Order to the MYTO 2024 is discriminatory, unconstitutional, and a clear violation of the applicant’s right to freedom from discrimination as guaranteed under Section 116 (2) (e) of the Electricity Act, 2023, and Section 42 of the 1999 Constitution (As Amended).”

He also stated that it violates the African Charter on Human and Peoples Right (Ratification and Enforcement) Act Cap A9 Vol. 1LEN 2004.

Agi also requested the court to declare that the use of the United States of American dollar exchange rate to determine the cost of tariffs in Nigeria is illegal, unconstitutional, and against public policy. Additionally, he sought an order to invalidate the NERC Supplementary Order to the MYTO 2024, as it is discriminatory and a clear violation of his right to freedom from discrimination as protected by the law.

However, no hearing date has been scheduled for this matter.

Naija News recalls that on April 3, NERC increased the electricity tariff for customers in the Band A category, who receive 20 hours of power supply daily, from N66/kWh to N225/kWh.

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