Electricity tariff: Digesting NERC’s Item Seven

The misdeeds of the living bring fond memories of the dead. Very many official events in today’s Nigeria bring Fela Anikulapo Kuti to mind. One instance was on Tuesday when Nigerians began to share the news of what they saw as a fresh increase in electricity tariff. Its suddenness and the (now common) insensitivity by the authorities were the focus. But there was a quick interjection by the Nigerian Electricity Regulatory Commission (NERC). The commission came up with an elaborate statement to explain and clarify and, of course, deny that there was a hike in the price of electricity. The explanation was signed by Chairman or NERC, Sanusi Garba and Commissioner, Edafe C. Akpeneye. Then there was another one attributed simply to ‘Management’, directed at the media houses which had published that electricity tariff had gone up by 50 per cent.

The NERC interventions brought more confusion. The commission found itself mired in languages to explain what it has done by explaining what it hasn’t done. Then Fela Anikulapo came to my mind. He sang about scenarios like that NERC explanation.

In the song ITT (International Thief Thief), the evergreen legend used his unquestionable knowledge of the way our political leaders run and ruin things to explain the confusion they inject in the system while they carry out their plans. The song, released 40 years ago, told of how foreign companies doing business in Nigeria connive with some privileged people among us, especially those who are politically-exposed, to fleece the helpless masses. Fela sang that they engage an unintelligent, pliant political leader, mostly from the grassroots but with the knowledge of those at the top, to seep into the life of the masses and steal them blind.

The NERC in their elaborate explanation listed various reasons for their action, while in the other statement, it said it acted “in compliance with the provisions of the Electricity Power Sector Reform Act (EPRSA) and the nation’s tariff methodology for biannual minor review.” So, in obedience to the Act, “the rates for service bands A, B, C, D, and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation and movement in foreign exchange rates.” In denying the raging reports that there was a 50 percent hike in electricity charges, it said “in the light of the strong public interest on this matter, the media is hereby requested to retract their earlier publications misinforming electricity consumers nationwide about purported 50 per cent increase in electricity tariffs.”

The NERC brought to mind these lines in the song ITT by the Black President:

Many foreign companies dey Africa carry all our money go

Them go write big English for newspaper, dabaru we Africans

It was a widely held belief among Nigerians that they had a friend in the NERC, and that this friend would always rise in their defence whenever the exploitative electricity distribution companies (DISCOS) come with their now well-known abracadabra. NERC seemed like the safety net they so much need in the rapid unfettered slip into economic and social abyss occasioned by a labyrinth of unfair government policies. Fela explains:

Them go dey cause confusion

(Confusion)

Cause corruption

(Corruption)

Cause oppression

(Oppression)

Cause inflation

(Inflation)

The confusion by NERC started with its homily entitled: “Before the Nigerian Electricity Regulatory Commission in the Matter of the December 2020 Minor Review of the Multi-Year Tariff Order (MYTO) 2020 and Minimum Remittance Order for Ibadan Electricity Distribution Plc (IBEDC)”. It added: “this regulatory instrument may be cited as “The December 2020 Minoir review of MYTO-2020 and Minimum Remittance Order for IBEDC”. Didn’t Fela note that “them go write big English for newspaper, dabaru we Africans”? Then the commission itemised its points and exacerbated the confusion.

As a follow-up, there was also its ‘it was price adjustment “by NGN2.00 to N4.00” conundrum. Dr Joe Abah @DrJoeAbah tweeted “Someone that understands the @NERCNG statement can explain it to me. All I know is that I bought N50,000 electricity on 27 December 2020 and got 968.2 units. I then bought the same N50,000 electricity on 4th January 2021 and got only 934.9 units. The rest is Physics.” That was the height of “the go speak big English take dabaru we Africans.” But Gboyega Olorunfemi @gboyenautics explained thus: “Ezemmuo @DrJoeAbah you got about NGN2 increase and that represents about 4.2% increase on existing tariff. @NERCNG said “…rates for service bands A, B, C, D and E have been adjusted BY NGN2.00 to NGN4.00 per kWhr…” Some might have had NGN4.00 added to their electricity unit.”

However, the suspension by the federal government of the hike in electricity tariff pointed to the fact that there was a hike, but not by the percentage reported in the media. That was the meat of the intervention by the Minister of Power, Salah Mamman. To those who took up the role of explaining the confusion caused by NERC, and who laboured so hard to deny along with the commission that what they did was not increase in tariff, now you have it. If such people had shame, they should publicly apologise to Nigerians. We know that the Buhari government treats us like a conquered people, but we still try to maintain our sanity. Those who are stifled like a python’s prey, but are still laughing… like the “Suffering and Smiling” that the same Fela sang about, we are all in it together.

The supporters of those who, like Fela says, “Cause corruption (Corruption), Cause oppression (Oppression), Cause inflation (Inflation) “oppression, confusion, corruption, inflation” should look at item seven tagged “Reviewed Indices” which NERC said were considered in arriving at “the December 2020 Minor Review of MYTO-2020 and Minimum Remittance Order for IBEDC.” On the menu for the item seven by NERC are “Nigerian Inflation Rate”, “Exchange Rate”, “US Rate of Inflation”, “Available Generation Capacity”, “Gas Price”, “MDA Losses”, “CAPEX Adjustment”. The list appears in order of importance. We know how healthy our economy is with these meals.

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