The National Union of Electricity Employees (NUEE) has expressed its intention to pull out its members’ services, which the Federal Government plans to use to implement the proposed electricity tariff increase.
Engineer Adebiyi Adeyeye, the National President of NUEE, voiced his opposition to the electricity tariff hike in a statement released to the press on Sunday.
“As the representative body for employees in the Generation, Transmission, and Distribution sectors, we are obligated to address issues that directly affect our members and the public,” he said.
Adeyeye stated that after a comprehensive review of the Commission’s announcement, it was clear that the decision to raise tariffs was not in line with the interests of the general public.
“NUEE strongly opposes any policy that imposes a burden on the Nigerian people, especially the underprivileged,” he added.
Adeyeye expressed his deep concern about the impact of this increase on their members and the general public, especially in the current challenging economic environment.
“While we acknowledge the need for investment in the power sector, we believe that improving efficiency and reducing energy losses should be prioritized before adjusting the tariff further,” Adeyeye said.
He went on to say that the proposed tariff increases, particularly for Band A consumers, would disproportionately affect those who heavily rely on electricity for their daily needs.
“This change in pricing dynamics threatens to widen inequalities, favoring the wealthy while putting undue pressure on the less fortunate segments of society,” he continued.
He further stated that the rising cost of electricity directly affects household budgets, forcing difficult choices between essential needs and paying electricity bills. For businesses, the increased cost of electricity leads to higher production costs, which can result in price increases for goods and services, further driving inflation and impeding economic growth.
Moreover, Adeyeye asserted that the intended benefits of the tariff adjustment do not extend to the union’s members in the distribution sector, especially the legacy staff. Instead, it seems to serve the interests of a select few within the DISCOs, ignoring the plight of workers facing delayed salaries and pensions, high targets for the staff, and other financial hardships.
He noted that the timing of this tariff increase feels particularly insensitive given the current economic situation. Many Nigerians are already facing financial hardship, and this additional expense adds unnecessary stress.
Adeyeye added that no consultation was made with any stakeholder before violating the provisional power sector reform act, 2023 as amended.
Furthermore, he pointed out that much of the DISCOs electrical infrastructure is decades old. Over time, their transformers, distribution poles, and distribution networks have deteriorated, leading to inefficiencies and increased power losses. This has reduced the wheeling capacity of the Transmission Company of Nigeria from about 12,000MW to just about 4,000MW.
He emphasized that regular maintenance is crucial for keeping the circuit in good working order. However, the lack of proper funding and resources in the DISCOs often leads to neglected maintenance, further exacerbating the problems.
A significant amount of power is lost during distribution due to outdated and poorly maintained power equipment and 33/11kV lines. These losses can be as high as 40% in some areas, significantly reducing the amount of electricity that reaches consumers. He questioned how the DISCOs could neglect all these issues, ignore the changes they should have made to the power sector after 13 years of privatization, and proceed with increasing electricity tariffs.
Finally, he added that the recent electricity tariff hike is a blatant disregard for the welfare of the Nigerian people.
