Some power specialists have criticized the hike in electricity tariffs, calling it arbitrary and demanding that it be reversed immediately.
The unexpected hike, according to experts who talked with the News Agency of Nigeria (NAN) in Lagos on Thursday, was unlawful.
According to NAN, consumer organizations and industry experts have continued to oppose the rise in energy bills by power distribution firms (Discos), calling the raise unconstitutional.
“There is no noble rationale for the Discos’ recurrent and at times covert increase in power tariffs beyond their cruel exploitation,” said Mr Sina Odugbemi, National Coordinator of WhereIsTheLight, an advocacy organization.
“Profit, not service, is the priority of these organisations that always transgress all norms of engagement with impunity, and the government is allowing such barefaced plunder and lawlessness.
“This demonstrates the immorality of privatizing public utilities while continuing to use public cash to support the same industry sold to a few privileged individuals.”
According to Odugbemi, sustainability should be achieved by exceptional service rather than exploitation of clients.
He said that the vast majority of electricity customers were still not metered as the federal government had promised and required.
He pondered how the Discos could continue to raise prices when many towns had already purchased transformers, cables, and poles.
He said that communities were still paying Disco personnel to repair defects and materials, in violation of the Nigerian Electricity Regulatory Commission’s standards (NERC).
Despite this, he stated, the Discos claimed ownership of components such as transformers, poles, and cables purchased by towns, businesses, or people.
“Isn’t that insane and open robbery?” he said.
“This is illegality of the greatest order,” said Prof. Yemi Oke, a legal consultant and energy advisor. So we’ll continue to raise tariffs arbitrarily without following the letter of the law? What a pity!
“This is illegality of the greatest order,” said Prof. Yemi Oke, a legal consultant and energy advisor. So we’ll continue to raise tariffs arbitrarily without following the letter of the law? What a pity!
“This is not how things are done in any reasonable climate. We’re educated and civilized enough to realize what’s going on around there. It’s a real shame.”
“We’ve been reduced to nothing as a people and enterprises,” the professor said of the tariff increase. Before the raise, the general public was not even provided the decency or politeness of information or proper warning.
“Tariff techniques have legal foundations. NERC has regulations, but it is breaking them by failing to assure adequate regulation of this critical industry.
“A part of regulatory efficiency is establishing clear norms and standards with defined benchmarks.
“A sensible regulator will neither promote or condone covert rate increases. It’s all a result of a lack of direction, leadership, and regulation.
“It will never boost sector efficiency or save Discos from technical insolvency.”
Oke went on to say that Nigerians will continue to play “clever” and resist the oddity.
“A responsible regulator will be open, forceful, and decisive in its activities, even if tariffs must be justified.
“So Nigerians have no right to know? We’ve become so ‘worthless’ that we continue to pay more even when service hasn’t improved.
“Instead of growing the supply net, we’re over-tasking and over-billing the few current clients. “I can’t wait for Nigerians to assert their rights as power users or consumers,” he remarked.
He was clear that any rise in power tariffs must be preceded by a Multi-year Tariff Order (MYTO), and that 2020 was the last order in a bi-annual assessment to decide tariff increases.
He stated that the MYTO must be examined and a tariff increase authorized after following established procedures, including extensive public participation.
“This latest one demonstrates how determined they are to continue to take Nigerians for granted,” he remarked.
Mr Samuel Ilori, National Coordinator of the All Electricity Consumers Protection Forum, stated that the regulatory body never provided a real basis for authorizing price increases for Discos.
Ilori said that NERC has repeatedly broken the law in order to gratify Discos’ insatiable thirst for growth under the guise of being competitive and attracting investors.
“In 2016, when the first substantial increase was done utilizing MYTO schedule 2014, it was evident that the then minister accepted the rise to fulfill the craving of the Discos.
“Because they stated they were not reaching their objectives and could not break even, thus the former minister said it was necessary and branded it ‘bitter pill’ Nigerians must swallow even though its permission was in contravention of section 76(2)(b) of electric power sector reforms Act, 2005.
“I shall encourage the government not to renew the virtually expired 10 years performance agreement of November 3rd, 2013, inked with the Discos by the President Goodluck Jonathan-led administration.
“Enough with the blame games; it’s clear that after 10 years, the existing investors can’t lead us anywhere, thus the contract must not be renewed,” he stated.
Ilori stated that the perception of a 100% rise in tariffs for the new year was incorrect, and that there was a systemic scam pre-approved by the NERC to act as the small review window lawfully granted under the MYTO schedule 2014.
He stated that the MYTO required the Discos to request minor reviews every six months if certain requirements were met.
“The deception implicit is that, instead of that bi-annual small review, the NERC has approved ahead unilaterally a periodic rise from January to December of each year up to 2027 for each Discos without consulting the other stakeholders.
“As a result of the NERC papers, this increase will be seen every year from January through 2027.
“That’s how callous the regulatory organization has grown and the scorn they have for Nigerian electrical users.
“We are willing to go to court again to question the NERC’s legitimacy in providing approval and also seek reversal and repayment of any unlawful charges to customers on the basis of yearly tabular rise in the order 205/2020 of September 2020,” he added.
However, Mr Adetayo Adegbenle, Executive Director of Power up Nigeria, stated that the MYTO agreement explicitly stated that tariffs will be reviewed twice a year.
“I have stated this a million times, instead of protesting and moaning, if it is not going down well with Nigerians, let us approach the National Assembly to get this reviewed.
“Nigerians should also take notice that the progressive reduction of subsidies in energy tariffs has been executed successfully,” Adegbenle remarked.
Similarly, Dr Tinuade Sanda, Managing Director of Eko Electricity Distribution Company (EKEDC), defended the rise in electricity tariffs inside its network.
Sanda indicated that the latest tariff increase only applied to users in bands A and B (customers with an average service time of 16-20 hours), and that the average increase was in the area of N8.
She stated that the tariff rise was partly influenced by foreign exchange and an increase in gas costs.
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