The Chairman, Nigerian Electricity Regulatory Commission, Dr. Sam Amadi, has raised the alarm that any attempt made to suspend the planned review of the electricity tariff regime will result in the death of the power sector.
Amadi told our correspondent in a telephone interview on Monday that prior to now, the tariff had been spelt out in a plan covering 2012 to 2015, which was published by the commission.
He stressed that from the plan, there were stipulated tariffs for every year tied to three major milestones – quantity of power supply, foreign exchange and inflation trends.
On the call by the organised labour and other stakeholders to halt the planned increase in the electricity tariff, Amadi said it was unnecessary as the people canvassing the suspension had no good understanding of the tariff system.
“If we suspend the review of the tariff, we will only be killing the sector. Those that are saying we should suspend the review lack the capacity to understand the way the tariff system works,” he added.
The NERC boss, however, maintained that the periodic review of electricity tariff was based on projections arrived at using a formula that took into consideration relevant parameters, adding that the commission was not imposing tariff on consumers, but was only being guided by the projection.
Explaining the reason behind the planned tariff increment for most electricity distribution companies, he said the commission, from available statistics, had observed that the quantity of power supply went up.
“At this juncture, if we decide to suspend the planned review, no investor will want to come and invest in the sector. We know people are suffering and we are not reviewing tariff because there is supply. We are doing this because we want to create supply,” Amadi explained.
According to him, the non-availability of gas to the power generation companies has continued to pose huge threat to operations, while also affecting projections.
He said the tariff of the R1 customers who consume between zero and 50kWh of electricity monthly would not be reviewed.
But for the R2 customers, under which most households fall, NERC had announced that the cost would increase by N1 per kilowatt. It also said the electricity fixed charge, which was to rise to N1,500 from June 1 in the Multi Year Tariff Order for 2014, would remain at N750 for some customers.
On Tuesday last week, officials of the Federal Government and the organised labour had engaged in a heated argument over the recent increase in electricity tariff.
The Federal Government had last month announced a review in the tariff with marginal increase in the energy charge effective June 1, 2014.
The development had been condemned by various labour unions.
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Suspending New Power Tariff’ll Kill Sector – NERC
Suspending New Power Tariff’ll Kill Sector – NERC
NigerianEye
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Tuesday, June 17, 2014
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Amadi make sure this is not an organised formula to cause more hardship to the poor masses.
ReplyDeleteDr sam Amadi, you have fish brain. You have not made any reasonable effort to convinced us or to improve the current situation on ground. We are curently over paying for consumption without light or electricityavailability.Is the soul right of Federal Govt. to empower and support all Oil Companies operating in Nigeria to build Gas plant to power our Electricity or local consumption. We have one of the best LNG in the world, sells gas to developed countries but no gas for local consumption or sells crude oil but no Refinery to refined the product. We should stopped lying and pretending that everything is alright. Is not tariff that will improve the current power situation in Nigeria.. I have never seen a situation wereby an investors collect money from his costomers before building his factory and selling his product. Lets call a spade a digging instrument.
ReplyDeletedat Amadi is sick, his reall mad
ReplyDeleteThe guy needs to listen to himself very. Everytime, NERC is increasing the cost of darkness. Monthly charge of N1,500.00 for darkness. Chai dia ris God ooo in everything we are doing o
ReplyDeleteLet there be darkness, and there is more darkness. Thanks to you
ReplyDeleteDr Amadi, are Nigerians been asked to pay in advance for services not rendered? Supposing a medical clinic asks you to pay in advance in order to improve their service capacity, will you pay? Hardly do we get 5 hours of electricity in a whole week. Often, there is no supply at all for a whole week yet we are been made to pay at least 3,500 to 4,000.naira flat estimated bill. And now you want to increase it; may be you are removing subsidy on electricity. All these are happening because Nigerians take just any thing. Whose interest are you serving? Helping so called investors to rip Nigerians off? Do you think Nigerians will not react one day? Even a goat at some point will turn against its oppressor. Watch out for the sure reactions of the common man.
ReplyDeleteIf tariff is increased with the abysmal supply of gas to the power stations, would this not further impoverish the nation? People are groaning in the dark and you deem it fit to increase/compound their pains.
ReplyDeleteI believe this Amadi should be sacked for such utterances. Enriching the investors at the detriment of the Nigerian people.
This country is very sick and it is unfortunate that it is the common man that suffers it all. NERC is only interested in increasing tariffs without a commensurate increase in quality of service. Why must there be fixed charge in the first place and if it is a must, why must it be this high. God save us from these greedy individuals.
ReplyDeleteHow can NERC increase tarrif for what people are not benefiting from.How can the customers pays for what they are not using.You people should wake up from your slumber and give an efficient and uninterrupted power supply.Then people can be paying for the services you people are rendering. But for now,you have been doing next to nothing as far as Electricity supply is concerned.
ReplyDeleteIncrement in electricity tariff without adequate power supply is tantamount to corruption and stealing which should amount to death penalty on the power regulator.
ReplyDeleteIt is painful to hear this from a top boss in NERC, it only shows how far from reality these people are and i really wonder if there is a framework to improve electricity or impoverish Nigerians. How do you pay more for services you don't enjoy, it is putting the horse before the cart which is the-same method we have applied over the years IT DOESNT WORK!!!!!. If paying more was the key, the tariff has been increasing has it ever improved electricity supply. So with the Tax being paid, Government cannot Stand in the Gap to first Invest to ensure a robust Electricity supply base then recoup the money through a systemic increment over a period of time, yet you want investors to come in without allowing the forces of demand and supply to work and a transparent framework to ensure quality and accurate billing.
ReplyDeleteSometimes I wonder what is always on d mind of these corup and srlfish experts like amadi.they said he is an expert in what.can d socall investors bill and collect money in their country without providing d services? Gej should sack these kinds of elements like amadi.he is totaly corupt
ReplyDelete.they own these socall companies in d name of invetors
Hrtless amadi, God is watching u.
ReplyDeleteThis is day light robbery, solar panel and wind energy is far better but mose pipo cannot afford it. This country is in a mess.
ReplyDeleteNigerians, the time has come to rise up against governmental oppressions. From now let the common man policy be "NO ELECTRICITY SUPPLY NO PAY" Lets start now. Resist this EVIL. If we dont they will one day sell us to fill their bank account. The truth is that they are powerless against the uprising of the people. LET US RISE UP AGAINST THESE OPPRESSORS. Dr Amadi, u are a pretender, where are those before you, surely you will be brutally and disgracefully consumed by the anger of the common man. Just watch out.
ReplyDeleteHOW MANY MEGAWATTS DOES A STATE IN NIGERIA NEED? ONLY LAGOS STATE NEEDS UP TO 1000 MEGAWATTS OF ELECTRICITY. MANY STATES REQUIRES ABOUT 300-500 MEGAWATTS TO FULLY SUPPLY POWER 24/7. SMALLER POWER PLANT, LESS PROBLEM AND COST EFFECTIVE.
ReplyDeleteIN FACT, EACH STATE TO START PROVIDING POWER FOR THEIR CITIZEN PERIOD.