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    Lagos Ajah Feeder Cuts Electricity As EKEDC Increases Tariff After NERC Order

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    Naija247news Editorial Teamhttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    Some Lagos households along the Lekki-Ajah corridor are complaining about the reduced supply of electricity by the Eko Electricity Distribution Company (EKEDC).

    The situation has been linked to the recurring trip of the 33kv Ajah feeder serving areas between the second toll gate and Ajah.

    Affected places include Victoria Garden City (VGC), Manor Gardens, Napier Gardens, Eleganza, Orchid road, among others.

    Last month alone, the EKEDC blamed the feeder for power outages recorded at least eight times – August 5th, 9th, 12th, 13th, 19th, 21st, 22nd and 24th.

    On September 2, the EKEDC again informed customers that the downtime they were experiencing “is due to fault detected on the 33kv feeder”.

    Residents wonder why the company is yet to replace or fix the transmission equipment after repeated interruptions in recent months.

    A spokesperson, Tiwalade Haastrup told DAILY POST that steps to resolve the problem are being taken with the recent approval by the Central Bank of Nigeria (CBN).

    “We just got approval for network improvement and infrastructure projects. The CBN approved it (funds) recently.

    “We will rehabilitate the feeders giving us issues and also construct alternative feeders so that our customers will no longer experience a shortage of power supply”, Hastruup assured.

    It is unclear if the funds are ready for disbursement but Hastruup confirmed that the bidding process to select contractors for the work is in progress.

    Electricity tariff in Nigeria may rise as NERC concludes extraordinary review

    In September 2020, EKEDC and other Distribution Companies (DisCos) implemented the Service Reflective Tariff Plan after the Nigerian Electricity Regulatory Commission (NERC) approved the Multi-Year Tariff Order (MYTO) 2020.

    Meanwhile, the EKEDC has increased tariffs again. The effective date was September 1, 2021, according to the General Manager, Loss Reduction, Olumide Anthony-Jerome.

    The official’s memo addressed to customers, with ref: 023/EKEDP/GMCLR/025/2021, was seen by DAILY POST.

    It explained that the increment was a result of the nationwide mandate to enforce the Serviced Based Tariff approved by NERC.

    “Kindly note that the increase will be reflected on the energy bill for October 2021 which will represent energy consumption for September 2021.

    “For our metered customers with internal vending arrangements, we urge you to adjust the rates accordingly to reflect the new tariff increase as released by NERC”, Anthony-Jerome wrote.

    But it appears that the EKEDC is oblivious of its directive. As of September 3, a notice on their website seems to deny the commencement of a new regime.

    The statement signed by EKEDP Managing Director, Adeoye Fadeyibi cited “news making the rounds in the media from unsubstantiated sources of a planned adjustment in electricity tariffs” and advised citizens to “disregard all such reports”.

    Curiously, the correspondence by GM Anthony-Jerome was dated August 25, while the MD’s rebuttal was issued on August 28.

    Nigerians and organizations oppose the NERC order on the heightened charge. In its reaction, ActionAid stressed the need for consultation with the masses and protection of consumers’ rights.

    The organization denounced the directive to all 11 DisCos, the second in one year, adding that the development would further erode the purchasing power of workers in formal and informal sectors.

    Ene Obi, the Country Director called the action ill-timed and insensitive to the plight of Nigerians whose lean disposable incomes are already decapitated.

    ActionAid hinged its position on the premise that previous hikes did not translate to effective strategies to manage the impact on macro-economic indices affecting economically crippled end-users.

    Obi warned the Federal Government to stop draining ordinary people and challenged the NERC to compel all actors in the power supply industry to ensure efficiency in the power sector.

    ActionAid said if the tariff increment was not reconsidered, the production cost of items will increase and might cause job losses in a country with a high level of unemployment.

    The body working against poverty and injustice worldwide expressed fear that investors who rely on electricity will find it hard to break even.

    “They will have to shift the burden of the increased cost of production to the final consumers of their products and services in an economy already choked by inflation”, Obi contended.

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