Labour to join forces against increase in electricity tariff

Organised labour under the aegis of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) of Nigeria are joining forces with the National Union of Electricity Employees (NUEE) against the increase in electricity tariff which they contend is unjustifiable amid dwindling power supply to Nigerians since the privatisation in November last year. The increase took effect from June 1.
The Nigerian Electricity Regulatory Commission (NERC) has come under pressure to up electricity tariff in order to encourage more investment in the power sector.
Sam Amadi, chairman of NERC, announced recently that electricity cost would increase by N1 per kilowatt for customers in R2 category from June, and that the electricity Fixed Charge (FC) which was to rise to N1,500 in the Multi-Year Tariff Order (MYTO) for 2014 would remain at N750 for some customers.
But the TUC in a statement signed by its president and general secretary, Bobboi Kaigama and Musal Lawal, respectively, last week, warned of possible mobilisation of workers for a mass action should the government go ahead to effect the increase.
“To us the move is queer, uncalled for, and another deliberate attempt by some cabal to further exploit the already impoverished masses of the country, especially as the power supply and distribution situation has remained comatose even after the privatisation of the sector, contrary to the Federal Government’s promise to tackle the inherent challenges.”
Equally stamping opposition to the tariff increase, weekend, Joe Ajaero, the deputy president of the NLC and general secretary of NUEE, said Nigerian workers would not accept it. He said the planned tariff increase can only compound the hardship Nigerians are facing amid erratic power supply.
“Our stand is very clear on this; we shall stand to reject any hike in the electricity tariff. We told them when they were privatising this sector that they will add to the burden of the people, but they insisted and have their way by force. I am glad that other unions are now joining us to reject this planned submission against the poor and vulnerable Nigerians.”
Ajaero argued that government’s plan to increase the tariff without regard to the pathetic situation of the masses, pensioners and the unemployed, was unacceptable, pointing out that the problem in the power sector is not that of low or poor tariffs but most visibly that of corruption and the desire of the new owners to make money within a very short time without corresponding investment. He contended that most of the new investors were trapped because they did not know the problems in the sector before rushing to the bank for loan.
“Much as the electricity is seen as social and economic issues, people are going for profit maximisation so the situation will still get worse. Since they didn’t know the financial viability and they bought, this is what will happen. I want to say that this is just the beginning. We would be lucky if there is no regulatory hijack which will be the end.” Ajaero said.