Despite the erratic power supply in the
country and frequent system collapses, electricity tariff will continue
to rise, the Nigerian Electricity Regulatory Commission has said.
NERC, while defending the Federal
Government’s position on the recent increase in fixed electricity
charges, said the Multi Year Tariff Order had an approved tariff
stipulated for 2012 to 2016.
The MYTO, which was prepared by NERC and
obtained by our correspondents, showed that there would be increases in
electricity tariff every year till 2016.
The tariff schedule showed that
consumers would have to pay higher on two fronts. Every year, the fixed
cost will go up. Similarly, the energy cost or cost per kilowatt hour of
electricity will also go up.
NERC had consistently said that increase
in electricity tariff would be for the short run and that the amount
payable by consumers would begin to fall when the country had produced
enough electricity.
The annual tariff increase, our
correspondents gathered, would be automatic not minding whether there
was appreciable improvement in power supply or not.
The Chairman, NERC, Dr. Sam Amadi, while
briefing journalists on Monday following public outcry against the
recent increase in the fixed charge from N500 to N700 or N800, depending
on the location, said, “The truth is that the tariff must increase
despite shortfalls in service delivery.”
He argued that the inability of power
distribution companies to live up to expectation was not a tenable
reason to slash tariff, adding that it was in the interest of Nigerians
not to reduce the charges.
Amadi said most of the shortcomings in
the sector were structural and insisted that the commission would not
reverse itself on the approved tariff regardless of the
underperformances of power distribution companies.
He said, “We regret that the
distribution companies have not been very committed to meeting their
obligations in the MYTO. NERC recognises that the quality of service has
not seen significant improvement, especially in the area of metering
and accurate billing of customers.
“Our expectation for significant and
sustained improvement in electricity supply and quality service lies in
the expected takeover by the privatisation preferred bidders, who have
better incentives and commitment, and have made enforceable promises to
invest continuously in providing better services to consumers.
“These investments and commensurate
improvements will not all be made in one day but over the coming months,
years and decades following the entry of new investors and managers of
our distribution companies.”
The Nigeria Labour Congress on Sunday
condemned the new tariff designed by NERC, with its President, Mr.
Abdulwaheed Omar, saying the body rejected the latest figures because of
the epileptic electricity supply and the low purchasing power of the
working people.
But reacting to the NLC position, Amadi
argued that two minor reviews conducted by the commission did not result
in increase in tariff.
This, he said, was because the
fundamentals of the MYTO and the financial model published on NERC’s
website had not significantly changed.
“We must state that the commencement and
results of both minor reviews were announced via various national print
and electronic media, including some that carried various provocative
statements that bear absolutely no connection with the truth,” Amadi
said.
On what the penalty was for distribution
companies that failed to provide stable electricity despite collecting
high fixed charges, the NERC boss stated that the commission had
responded with regulations to enforce correct billing of unmetered
customers.
He said NERC had also introduced the
Credited Advance Payment for Metering Implementation policy to help
protect electricity consumers.
“We will continue to
enforce these regulations and interventions to improve quality supply
before the preferred bidders take over the networks,” Amadi said.
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paying more but getting less. What a pity bundle of fraudsters
ReplyDeleteI think Amadi is just ranting foolish rants
ReplyDeleteAmadi is trully A Mad man.I hope Nigeria Labour Congress can kick against this by calling pple out to strike until d increases r reversed,on d other hand can NLC really be trusted
ReplyDeleteThese people are thorns in our flesh. The can,t think straight because corruption has eaten them deep.
ReplyDeleteThis is day light robbery. Amadi and PHCN should be arrested for this. Can he (Amadi) pays for what he did not used? Amadi FEAR your Creator and remember your last day.
ReplyDeleteAmandi warn
ReplyDeleteDnt wori mr Amadi,revolution s jst around d corner..i bet u nd ur co-fraudsters wil b dealt wit accordingly....imagin 4 ibrahim taiwo street in ilorin re usin less dan 2hrs lite per day nd we re payin N5,000 as monthly charges while street lyk agbo-oba also in ilorin re usin more dan 23hrs lite per day nd re payin N8,000.....I tink u re forcin our hand nd i bet it,u do not wnt 2 see our grievance
ReplyDeletethis is just the end of the road for Amadi and his co-robbers. u have beaten more than u can chew. just wait for our action
ReplyDelete