{"id":5669,"date":"2015-10-27T08:42:38","date_gmt":"2015-10-27T08:42:38","guid":{"rendered":"http:\/\/sahara.test\/?p=5669"},"modified":"2015-10-27T08:42:38","modified_gmt":"2015-10-27T08:42:38","slug":"no-justification-for-electricity-tariff-hike-stakeholders","status":"publish","type":"post","link":"https:\/\/saharaweeklyng.com\/no-justification-for-electricity-tariff-hike-stakeholders\/","title":{"rendered":"No justification for electricity tariff hike \u2013 Stakeholders"},"content":{"rendered":"

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Stakeholders note that the new tariff is more than 40 percent higher than the current levels and will be the second time in nine months, even as there has been no significant improvement in the electricity supply situation in the country.
\nWhile some consumers admit to better supply in some locations, majority however, insist that the situation is even worse than before, as they enjoy the scarce commodity only for a few hours late into the night, when it is really of no use to them.
\nNo justification: Reacting to the development, an advocacy group, Nigerian Electricity Consumers Advocacy, NECAN, said the recent \u201cconsultations\u201d on tariff carried out by electricity distribution companies, DISCOS, were a mere trick to justify tariff hike.
\nAccording to NECAN President, Mr. Tomi Akingbogun, \u201cWe believe NERC is allowing the public to be over billed by allowing the DISCOs justify the increases. Otherwise, how can it be explained NERC allowed a tariff hike of 12.5 to 48 percent in January, and allowing same percent in October of that same year?
\n\u201cNERC has allowed the DISCOs to take advantage of everyone and had changed the rules at will thereby breaking all the rules. The condition given to them was to ensure that customers are metered before complaining of losses.\u201d He therefore called on the President Buhari to keep his promises to Nigerians and discourage the exploitation by the DISCos.
\nCosts evaluation: Also commenting, the Director General, Lagos Chambers of Commerce and Industry, LCCI, Mr. Muda Yusuf, said the proposed upward review in electricity tariff at this time is worrisome, as consumers should not be made to pay for inefficiency or corruption costs.
\nHis words: \u201cIt is important to evaluate the elements of the current costs especially the integrity of procurement processes and other operational expenditure under the current dispensation. The risk of bloated costs is typically high with such enterprises, especially as they operate in a monopolistic environment.
\n\u201cPricing is only one component (although fundamental) in the power reform process. There are other issues such as the gas availability, security of gas infrastructure, adequacy of investment in gas infrastructure, security and adequacy of the transmission lines, and the general framework to mitigate the risk of investment in the sector.
\n\u201cThe problem of outrageous billing is yet to be addressed. The commitment to the provision of meters for electricity consumers to ensure fair billing is inadequate. A vast majority of consumers still have no meters.
\nInadequaciesin billing
\nYet this is fundamental to a good relationship between the power firms and their customers. Many consumers feel exploited at this time because of the inadequacies in billing. The contentious fixed charge is still in place. \u201cIt is heart rending that the choice of locations of many of the Independent Power Projects, IPPs, was informed more by politics than the economics of power generation.
\n\u201cAccess to a major input in power generation, which is gas, was not sufficiently taken into account. This reality has badly affected the cost profile of the IPP projects. All these are complications and challenges on the path of the power sector productivity,\u201d he maintained.
\nBreaking the law: According to Section. 76 of the Electric Power Sector Reform Act. MYTO 1.0 states that there will be no increase until 2017, and only 5% will be allowed. DISCOs were given two years to meter all customers. But they refused saying there was no money. Grant was given them, they refused to access it.
\nAlternatively, customers were asked to fund meter purchase and be refunded from their bills. But for three to four years or more down the line, nothing has been done to that effect. The law does not recognise estimated billing. NERC should stop the practice, but instead it allows it on the excuse that DISCOs must make profit.
\nPresently, only about 40 percent electricity users are metered. How does NERC want the DISCOs to make profit from the 40% customers captured? This is the question begging for answer if the plan is not to allow them make super profits before metering everyone.
\nNo valid basis for hike: Against this backdrop, the Nigerian Association for Energy Economics, NAEE, condemned attempts by the DISCOs and NERC to increase electricity tariffs, saying that there is no valid and empirical basis for any sort of increase.
\nSource: Vanguard<\/p>\n","protected":false},"excerpt":{"rendered":"