
…as businesses collapse, unemployment looms
With a three bedroom flat set to pay monthly electricity of about N108, 000 based on the new tariff hike, residents of Aba, the commercial hub of Abia State are lamenting this development as they accused the Nigerian Electricity Regulatory Commission (NERC) of being on a mission of economic sabotage.
The residents under the aegis of the Aba Electricity Consumers Forum (AECF) during a recent stakeholders meeting at Gulf Course Primary School in Aba North Local Government Area, rejected NERC’s recent increase in electricity tariff, stressing that it is unacceptable for electricity bills to be higher than house rent in Aba.
New Telegraph reports that on January 3, 2025, Aba Power Limited Electric (APLE), informed the residents about the new tariffs adjustment, a situation the residents faulted, noting that the Band Placement by APLE from Band A to Band E is faulty, deceitful and unrealistic, as the locations the company classified as Bands A, B and C hardly get electricity supply as indicated by the new tariffs. Many residents said that they were initially of the opinion that getting prepaid meters will end the menace of estimated billing.
However, they lament that with the present development residents on prepaid meter ‘living in bondage’ as unit cost has skyrocketed beyond their means.
The situation has led to dispute between the electricity providers in Aba and residents in major areas like Omuma Road, Area Command by Jubilee and Hospital Road where it has been alleged that residents either refused to pay or are challenging the service providers over their supply, a disagreement that has led to disconnection of those areas.
Lamentations
The AECF during the meeting that brought together industrialists, landlords, and other stakeholders in the city, urged NERC to review the new tariffs, which it said is already leading to the collapse of many Small and Medium-Scale Enterpris- es in the city, as small businesses are already shutting down sure to what it termed NERC’s inconsiderate and obnoxious decision.
The residents urged NERC to prioritise fairness and fair hearing in their recent tariff hike that its action and decision are crippling businesses, stressing that such hike is unacceptable, as it will make a mess of all the infrastructural achievements made by the State Governor Alex Otti so far.
In a letter dated January 28, 2025 and signed by leaders of the AECF; Comrade Ike Opigwe, Comrade Ojukwu Imo and Comrade Leonard Onyemesiri, the forum said that after a diligent study of the new electricity tariff increase, which has taken effect from January 2025, consumption visà-vis February 2025 bill, it would reject the tariff rate upward review.
The forum said that a situation where the electricity bill as expected by February will see some flats paying over a N100, 000 per month is unacceptable. The letter reads in part, “With what NERC has done, our electric- ity bill in Aba is now higher than our house rent. Do they think we get money from trees? Aba residents tackle APLE, NERC over electricity tariff hike
“They just want to shut down this city and we’ll not allow it. It is better they either correct this or disconnect the whole of Aba so that the Gover- nor will understand what we’re pass- ing through.” The forum further said that their rejection is premised on NERC’s clas- sification of electricity customers’ electricity consumers into five bands of A, B, C, D, and E.
According to the forum, NERC said that Band A customers should have power supply of 20 hours and above per day while Band B customers are supposed to enjoy16 hours electricity supply and above per day, a tariff they said APLE is already complying with without giving the needed supply. They noted further that Bands A and Band B are mirage that do not exist in the Aba Ring Fence.
While also stating that even the Band C that had power supply of 12 hours does not exist in the Aba Ring Fence, as no customer can boast of enjoying electricity supply as stated in Bands A, B and C. The forum said that the consumers were not consulted as stakeholders prior to the purported Tariff Rate Review, which is a breach of consumers’ right by NERC.
Pledges
According to the forum, it is unacceptable that NERC will increase tariff, talking about bands that do not exist in Aba, stressing that the tariff rate review is outrageous and unaffordable and will not be commensurate to electricity consumed.
They therefore pleaded with NERC to show concern over their plight, insisting on the old tariffs based on December 2024 consumption, as they await NERC’s response to their com- plaints.
The forum urged NERC to ensure that Aba Power Limited Electrical should not engage in self-help mechanism to enforce the rejected tariffs until their complaint to NERC is resolved.
They said that a situation where APLE recruits the services of some security operatives to accompany them to people’s homes to effect mass disconnection is unacceptable and will be resisted by them.
The residents, however, said that they have accepted the advice of the Joint Action Group (JAG) on electricity to ensure that they do not take laws into their hands but channel their grievances through the proper channel of the NERC Forum.
They said they will not resort to violence on the matter but will never accept to pay bills for power not consumed, stressing that since 2022 that APLE took over, they have been paying for darkness instead of light.
Exploitation
Leader of the Joint Action Group and also of the Aba Electricity Consumers Forum, Comrade Ike Opigwe, described NERC’S action as a complete exploitation.
“This is nothing more than exploitation. How can someone balance in one air-conditioning room and be dishing bills out to already troubled people to pay them N108, 000 a month in a flat?
“How many people can afford it? We’ve said that the Disco is not our problem, but NERC is our problem because the Disco doesn’t have powers to increase tariff. Therefore, Aba Electricity Consumers have written to NERC to reject it.
“Yes, the law gave NERC the power to increase but there’s a caveat in it, because there should be a customer engagement before the increment.
The process is to invite the Disco and customers. “When the Disco is through with their sweet narratives, then NERC will now ask the customers to hear if what the Disco said is true in terms of service delivery.
“Even God, before pronouncing judgement in the Garden of Eden, asked all parties involved to know who did what and what. So, it’s unfair that NERC will sit comfortably in Abuja and impose a tariff on customers in Aba without hearing from us.”
Opigwe, however, thanked the industrialists, residents and other stakeholders for choosing the right and lawful path, as the means of channeling their grievances.
“There should be no protest of any kind. We don’t have any problem with the Disco called APLE. What we have a problem with is the new tariff introduced by NERC. So, I’m glad you’ve chosen the dialogue angle to express your anger.
“I believe the Aba Landlords As- sociation, and so many groups rep- resented here today, will take up the matter from here because the situation is getting out of hand. So, remain peaceful and let’s make a change without violence.”
He said that the administration of Governor Alex Otti is doing his best to reposition the state, especially Aba, and urged the people to appreciate the Governor’s good works by showing a change in method of reacting to grievances.
Crippling impact
Mr Benson Uche, a manager of one of the biggest hospitality industry in Aba, lamented that the electricity hike is about to lead to the inability to pay staff and probably could lead to downsizing of staff just for the company to survive.
“Earlier this year we had that they’ll increase electricity tariff by 50%, but what we’re seeing now is over 100% increase. In my company, before this hike, I was loading N200, 000 daily, but immediately after this new hike, I’m loading over N500, 000 daily.
Calculate it in a month, you’ll discover that my hotel now pays N15, 000, 000 on electricity monthly “How can that be sustainable here in Aba? How am I going to pay salaries of my staff because currently we’re finding it very difficult to pay? It’s too exorbitant, it’s too high and unsustainable.
“As someone that is managing somebody’s company, what they pushing me to do is to release staff. If care is not taken, and if nothing is done, in a few months’ time, we’ll shutdown because I don’t see how we can make a profit to sustain this situation. A lot of businesses will collapse.”
Consequence
Barrister Dike Ogbonnaya, a retired public servant, said that the recent hike in electricity tariff and the attitude of the Disco towards the whole matter is shocking.
“I’m shocked by what’s happening. The unnecessary increase in tariff by NERC happened without consultation with the consumers. The law clarified that consumers needed to be consulted as well before any move to increase,’’ he lamented.
Adding, “They don’t know the consequences of what they’ve done. Many industries are now leaving Aba. People are suffering and leaving here. I can use myself as an example. In the house I built by myself in my village here in Aba, my bill was increased beyond recognition.”
Another concerned resident, Madam Chidinma Chinaka, a restaurant operator, said that the entire residents of the area where she is operating are fed up with the situation and are now on her neck because she has always been the voice calling on them to calm down. “The residents of my street are angry.
They’ve all told me that they’re no longer interested in the Aba Power Limited Electrical and their light. They’re even calling on them to come and take away their wires and sever their relationship with them because it’s unsustainable.”