Following the controversies that followed the recent announcement of an increase in electricity tariff by a Distribution Company (DisCo) last week, experts in the power sector have blamed the situation on the inefficiencies of the regulator, Nigerian Electricity Regulatory Commission (NERC).
This was even as they called for a mid-term review of the sector’s privatisation framework.
Speaking with the Nigerian Tribune on Tuesday, President, Nigerian Consumer Protection Network, Mr Kunle Olubiyo said there was a need to review the indices that determine tariff costs.
According to him, “From the index of the price input, the cost of gas is over-bloated. The tariff we had last year is old but over-bloated with cost indices and can be reviewed. We are paying for people to smile to the bank at the expense of the economy and it is not making Nigeria competitive.
“What we are requesting for is a mid-term review of the privatisation process, there is a lot of inefficiency being built into the system,” he said.
On his part, Yemi Oke, an Energy Law Expert argued that for the tariff to be adjusted, there was need for government as well as DisCos to fulfil conditions stipulated in the law.
According to him, phasing the estimated billing and ensuring mass metering would help ensure that consumers only pay for electricity consumed, while further giving them the opportunity to manage power.
“Unless we have in place the conditions the law asks us to put in place, we need to put in place massive metering to the extent that when you are asking Nigerians to pay slight increase they should pay for what is consumed and not for darkness and even where there is increase in tariff, with meters, Nigerians can modulate consumption pattern,” he said
He further stressed that for the sector to break even, there was a need to deal with the fundamental issues that have marred it to forestall collapse.
His words: “Tariff adjustment is not the solution, a subsidy is not the solution because this is been channelled into the wrong hands. The process of privatisation is grossly flawed and we will continue to build something on nothing, we need to revisit that process and restructure it.
“The current electricity power sector reforms is not a law that is intended to operationalise the sector. We need a law that addresses and speak to the concerns of Nigerians as against giving the regulator too much power which is being misused.
The Eko Electricity Distribution Company (Eko DisCo) had in an initial notice, dated August 25, 2021, and signed by its General Manager, Loss Reduction, Olumide Anthony-Jerome, said the increase was a result of the nationwide mandate to implement the Service-Based Tariff approved by the Nigerian Electricity Regulatory Commission (NERC).
It said the new tariff would be reflected on the energy bill for October 2021.
But hours after it issued the increment notice, the DisCo issued a retraction, denying any planned adjustment in tariff.
The retraction signed by its Managing Director (MD), Adeoye Fadeyibi said such notice did not emanate from the Company.
However, the sector regulator has since refused to react to the development.
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