Expert calls for suspension of electricity tariff increase
By Yusuf Yunus
An electricity expert, Mr Adetayo Adegbenle, has advised Distribution Companies(Discos) to meet up to 70 per cent metering gap within their network before increasing tariff on electricity consumption.
Adegbenle, Convener, PowerUp Nigeria, gave advice in an interview with the Business Intelligence (TBI Africa) on Monday in Lagos.
It would be recalled that 11 electricity Distribution Companies (DisCos) on July 14 sought the approval from government to review tariffs.
He advised that all electricity tariff review should be suspended pending when electricity customers are fully metered.
According to him, all previous tariff reviews have never met its expectations despite all the promises on paper, made by the Discos and Nigerian Electricity Regulatory Commission (NERC).
“Therefore, all tariff reviews should be suspended until all DisCos meets up to 70 per cent metering, and DisCos can increase collections by 50 per cent of their present ability.
“They also need to meet up with practical target of reducing their Aggregate Technical and Commercial Losses (ATC&C) by up to 60 per cent.
“We must note that this is the first time the Multi Year Tariff Order (MYTO) regulation is being followed by the Discos, by first applying for the tariff review.
“They will then have to follow the process by actually calling for customer engagement,” he said.
Adegbenle said: “Let the condition triggering tariff review be performance based. If you meet metering gap by a percentage, you can then qualify for tariff review.
“There is money to be made from the humongous debt DisCos are being owed.
“But there is no incentive for them to after these debts as they are able to carry these debts over.
“Let DisCos performance trigger the review process.
“Tariff reviews should be performance based, and should be DisCos dependent,” he added.
The expert urged NERC to call up other conditions for tariff review, considering the present economic situation.
He said that the recent removal of fuel subsidy and floating of Naira has also impacted on Nigerians.
On Federal Government intention to commence importation of pre-paid, Adegbenle condemned the proposed impending displacement of local meter manufacturers.
According to him, its process was anti-local industry; it will not help our economy and would only help other nations build theirs at the expense of Nigerians, for a loan we will still have to pay.
“This FG’s intention is against the backward integration policy that we have been pursuing as a nation.
“Well, I we will not call it “impending displacement” per se, but the move would not help local meter manufacturers.
“There is no way they will be able to compete with that bidding condition.
“They will have to come up with bid security of $500,000, and cashflow of over $5 million.
“We have not patronised them enough to expect that volume of transaction with them,” he advised.
He said that one of the manufacturers was complaining of owing over $20million to setup his factory, this manufacturer already even said he was ready to supply meters, all he needs is payment guarantee from CBN.
“Why are we not encouraging these people?.
On the alleged N37 billion investment project in free meter procurement and installation, the expert advised President Bola Tinubu to set up a committee to look into the allegation.
He said, “You can imagine we have a N37 billion somewhere and we are still taking World Bank loan.
“This is another deep issue. But you see, we live in a country where corrupt people gets away without consequence.
“I would have expected that these people are made to cough out this money.
“I think these people involved should be named and be made to answer to these things,” he said.
