Electricity tariff

FG Must Implement Electricity Tariff Reduction Agreement By December – NLC

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NLC President, Ayuba Wabba

The Nigeria Labour Congress (NLC) has tasked the Federal Government to ensure that the agreement to reduce electricity tariffs by N15 per kilowatt-hour is implemented by December.

The labour union in a notice it served the government, warned that it would not accept the serial violations of agreements.

The NLC President, Ayuba Wabba, made this known in a statement on Thursday titled ‘Gas sale to Gencos should be below $1.50/scf’.

He said, “It is significant that the incessant increase of electricity tariff was one of the several issues discussed between the representatives of the Federal Government of Nigeria and organised labour, hereinafter referred to as the principals, on 28th September 2020.

“Specifically, an agreement was reached at the meeting to set up an FGN-Organised Labour Technical Committee on Electricity Tariff.

“The technical committee thus set up on 28th September 2020 had a clear mandate to review several critical issues in the power sector and to suggest reforms that will provide succour to Nigerians over the short and long term.”

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Wabba said that the technical committee submitted its final report in January, noting that the Federal Government and labour met on February 22 and discussed the report.

The statement added, “The principals accepted, among other recommendations, that necessary actions should be taken to use efficiency to bring the gas price to below $1.50 per MMBtu.

“Whereas, the Gencos are required to pay as much as $2.50 per standard cubic feet, other gas users, however, get the same at lower rates, ranging from $1.50 to $1.70 per scf.”

According to Wabba, the principals resolved that gas companies should be integrated into the Central Bank of Nigeria payment wallet of the Nigerian Electricity Sector Industry to guarantee payments for gas and contract sanctity of Gencos.

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The NLC said, “Consequently, congress demands of the Federal Government to reduce the pricing of domestic gas supply to Gencos to less than $1.50 per scf.

“Congress remains implacably committed to the ultimate reduction of electricity tariffs by N15 per kilowatt-hour by December 2021 as contained in the agreement.”

Wabba added that the congress had thus served notice that the posture of the Federal Government to flout agreements was completely unacceptable and would be resisted.

An earlier report by Prime Business Africa noted that low income earning Nigerians are worst hit by the ever increasing electricity tariff in the country.

The new price for electricity per hour as seen in NERC website, is N62.33 per hour which implies that a 30,000 salary earner will pay as much as N498.64 per day and N14,959.2 every month out of a salary of N30,000.

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The implication is that most people who earn minimum wage would be left with N15,040.8 after paying their electricity bill if they do not want to be disconnected from the grid by the supplier which will leave them in darkness.

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