second in six months, Daily Trust investigations have shown.
The electricity distribution companies (DisCos) raised tariff by over 45 percent
in February.
The DisCos had written to the regulatory authority, the Nigerian Electricity
Regulatory Commission (NERC) demanding hike in tariff from the current
average of N24 per kilowatt (for residential consumers) to N50 per kilowatt.
However, the Director General of the Manufacturers Association of Nigeria
(MAN), Mr Remi Ogunmefun, told Daily Trust in Lagos that his association had
opposed that move in writing to the NERC.
The NERC announced the 45 percent hike in electricity tariff with effect from
February 1, 2016, and said theincrease would enhance service delivery and
customer satisfaction.
But since the increment, the electricity supply across the country has dropped
affecting both household and commercial activities.
A source at the NERC confirmed to Daily Trust that the DisCos had written a
letter seeking for the increase.
“When MAN got wind of the power firms’ letter seeking for the 100 percent hike,
they equally wrote a letter countering the DisCos claims,” the source said.
The spokesperson of NERC, Mike Faloseyi, when contacted on Sunday, said he
was not aware of the proposed hike but promised to get back to our reporter.
When Daily Trust contacted him yesterday, he said he was in a meeting but
would consult with the commission chairman and get back to us. But he never
did.
Power firms justify tariff
Daily Trust observed that in an attempt to justify its proposed electricity hike,
the umbrella body for DisCos, the Association of Nigerian Electricity Distributors
(ANED) has been running advertisements in about 10 national dailies in the last
five weeks highlighting “basic electricity facts the public must know.”
The publicity messages, ANED said, were meant to clarify the position of 11
power distribution companies in the power sector value chain.
Some of the paid publications carried messages such as: “Electricity is a
commodity with a price that must be paid.”
“The average residential tariff of N24.12/kWh is still significantly cheaper than
self-generated power at a cost estimated to be in excess of N50/kWh,” among
others.
ANED on its website also said the DisCos had a five-year performance
commitment to reduce power interruption, extend the distribution network,
increase metering and improve the quality of customer service.
One other message by the association reads: “DisCo operators only collect 24
percent of the tariff revenues. The balance goes upstream to transmission,
generation and other industry stakeholders (CBN, NERC, NBET, etc).”
The association said without a tariff that allowed the operators to recover their
cost of operation, there would be no increased generation or improved service
delivery.
On the recent vandalism, ANED in its most recent series of paid publicity said
electricity customers should blame vandals and not the DisCos as “we cannot
give what we do not have.”
MAN rejects fresh tariff
Manufacturers Association of Nigeria (MAN) confirmed to Daily Trust that it
recently wrote the NERC to express displeasure over moves to increase
electricity tariff in the country.
Mr. Ogunmefun said the letter to NERC was a continuation of MAN’s opposition
to intense lobbying by electricity distribution companies to increase electricity
tariff without recourse to procedures and rules.
He wondered why the DisCos were so anxious to introduce a new tariff regime
when the ongoing tariff would only lapse in 2017.
“We have an agreement with the electricity distribution companies on MYTO 2
which states that the current electricity tariff would terminate in 2017.
“We have consistently challenged the moves by the distribution companies to
hike tariff for manufacturers outside the MYTO 2,” he said.
Ogunmefun said, “We filed a suit at the Federal High Court Lagos which has
since given injunction stopping the electricity distribution companies from going
ahead to tamper with the current electricity tariff.
“We will not relent in our opposition to the moves by power companies to
increase electricity tariff outside the MYTO 2.”
He said the manufacturing sector alone contributed over 80 percent of the
revenue of the power distribution companies as such there was no justification
to stultify the sector with arbitrary tariff regime.
He said Nigeria was battling with infrastructure gaps and frustrating
manufacturers with high electricity tariff would go a long way in killing ease of
doing business in the country.
“To imagine an increase in electricity tariff with the already frustrating state of
infrastructure in the country is a mortal blow on the manufacturing sector,” he
said.
Civil society kicks
The Nigerian Electricity Consumers Advocacy Network (NECAN), a consumer
group earlier initiated by NERC, has frowned on the planned increase while
accusing the commission of complicity.
NECAN President, Tomi Akingbogun, told our reporter yesterday they confirmed
the proposed increment with MAN and that they would take up the issue with
the minister of power.
“We totally condemn it because it is dangerous for our economy at a point
when the DisCos are not supplying any electricity,” he said.
He said any fresh increase “is quite dangerous for this economy because it is
like inciting the people against the government; it means the people are being
pushed to the wall.
“The economy is almost nearing a recession. The increment if done will be 200
percent in two years. We believe the minister will not approve such and for
those who are having such thoughts including the owners of the DisCos, are
they really in Nigeria?”
Akingbogun said “Even Ghana just complained of poor power supply because of
the vandalism here in Nigeria. We are not having enough power now. This is the
fourth time they will be asking for tariff rise. When they first asked for 100
percent, NERC gave them 50 percent and it happened the second time.
“NERC should have thrown their request out but it is better we don’t wait for
NERC because they may not say anything to the advantage of the public. In the
past, they aligned with the GenCos, that is why we, as the voice of the public,
said this must not be done,” he said.
Consumers’ reaction
Individual electricity consumers across Abuja and environs also expressed their
dismay over the new proposal. Mr Nwigwe Obi who runs a welding venture in
Nyanya, Abuja said it would not work as Nigerians would resist such moves at
all cost.
“We have not even gotten over that of February 1, 2016 when it rose to over
45%. This time, government should know that everybody will rise up in protest
because it is too much,” he said.
Malam Haliru Musa, a cold room operator in Mararaba, Nasarawa state said
the DisCos should not think that way because the power supply situation has
been bad in the past months.
“The DisCos won’t think of that because vandalism has crippled power and they
have not supplied meters to customers. Nobody will pay if they attempt to even
increase a little,” he said.
Mr Odoh Vincent, a resident of Lugbe, Abuja said “with the last increase, my
estimated bill rose from an average N3,000 monthly to about N7,000. The
DisCos promised to provide meters after the February increase but we have not
seen any yet.”
DisCos response
When contacted yesterday, the spokesperson of ANED, Barrister Sunday
Oduntan said in a text message that it was not true. “No. That is not true. Call
me later,” Oduntan said. He didn’t answer subsequent calls or respond to text
messages sent to his mobile phone.
Source:Dailytrust
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