Experts condemn proposed electricity tariff increase
By Yusuf Yunus
Some power experts have condemned the proposed increase in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC) to start from July 1.
The experts in separate interviews with the Business Intelligence (TBI Africa) in Lagos, said that the proposed increase was not realistic.
NERC is set to increase electricity tariff by 40 per cent from July 1, under the Multi-Year Tariff Order (MYTO).
A Professor of Energy and Electricity Law, Yemi Oke, said “it is inappropriate at this point in time for government to increase electricity tariff.
“Nigerians cannot afford another energy hike having recently had removal of petroleum subsidy.”
He blamed it on regulatory inefficiency and said that Nigerians could not feel the impact of the regulator.
He said: “It’s like there is no one in charge to regulate; Nigerians should not be taken for granted; it could be tantamount to sitting on kegs of gunpowder.
“So, the DICSOs are the ones to tell Nigerians about impending tariff increases amidst horrible supplies?
“Dollarised borrowings or lending for a Naira denominated market, is in my humble view, taking a plunge. I pointed out the same to Discos when they embarked on their acquisition borrowing just to buy those entities.
“Naira was one dollar to N161 and N166 when they accessed those facilities from Nigerian banks.
“Naira went “south” and subsequently became N500, N600 and now N750. That is why a few banks failed and most of the Discos are technically insolvent and under forms of receiverships.
“You will be unable to keep jacking up tariffs to reflect the current Naira rate,” he said.
Also, Mr Sina Odugbemi, National Coordinator, Where Is The Light, an advocacy group, said, there was no noble reason for the increase in electricity tariff by the Discos.
“Profit, not service, is the focus to these organisations that always breach all rules of engagement with impunity, and the government is condoning such barefaced robbery and lawlessness.
“This points out the evil of privatisation of public utilities while still using public funds to sustain the same enterprise sold to a few privileged individuals,” he said.
According to Odugbemi, sustainability should not be by exploitation of customers but by quality service.
He said the overwhelming majority of power consumers were still not metered as promised and directed by the Federal Government.
He wondered how the Discos would continue to hike tariffs when many communities bought transformers, cables and poles themselves.
He said communities still made payments to officials of Discos to fix faults and materials, contrary to the guidelines of the NERC.
He said despite this, the Discos claimed ownership of materials such as transformers, poles and wires bought by communities, companies or individuals.
“Is that not crazy and open robbery? he queried.
