The Electricity and Water Regulatory Commission (EWRC) said it has removed the T1 pro-poor tariff from the retail electricity tariff structure on grounds that it benefited both the rich and the poor. The decision, which came into effect last month, was backed by an application submitted by the Electricity Distribution and Supply Authority (EDSA) to eliminate the T1 Band from the retail electricity tariff structure.
Section 13 of the EWRC Act requires a stakeholder consultation be done before a key policy is introduced or changed, but there is however no public record that this legislative requirement was adhered to. When contacted, the EWRC said the authority in charge was unavoidably absent for comment.
The T1 Social Band was initially intended to provide low-cost electricity to the poor. However, a review and analysis of the tariff structure revealed that all customers, including the wealthiest, were benefitting from the pro-poor categories, said SLEWRC in a statement. This situation, the commission said, has resulted in EDSA facing challenges in generating revenue necessary for purchasing electricity from independent power producers (IPPs) such as Karpower and CLSG.
Recognising the impact of this change on the genuine pro-poor group, SLEWRC said it would work closely with EDSA to deploy appropriate technology for accurately categorising customers within the pro-poor segments. The commission further expressed its commitment to review this decision once the technology that identifies and separates poor customers from high-end users is in place.
The removal of the pro-poor tariff has invariably driven up electricity cost for low-income earners, especially the poor. This situation greatly affects the disposable income of many households, creating resentment and discontent among society’s poorest, as many now complain about having to spend more money just to purchase a little token from EDSA that wouldn’t last a month.
EWRC however reassures the public that it is taking steps to address the challenges posed by the removal of the T1 Social Tariff Band, with a focus on ensuring equitable access to electricity for all residents in Sierra Leone.
