THE Nigerian Electricity Regulatory Commission, NERC, and Electricity Distribution Companies, DisCos, have concluded plans for a fresh public hearing on electricity tariff review.
This is even as consumers and other stakeholders, weekend, kicked against the move, arguing that it would culminate in increased impoverishment of Nigerians, currently passing through very difficult times.
However, the public hearing scheduled for Thursday, July 20, 2023, is targeted at getting responses from stakeholders, including consumers, analysts, investors, planners and human rights activists.
The Executive Director, Research & Advocacy, Association of Nigerian Electricity Distributors, ANED, Sunday Oduntan, could not be reached for comments when Vanguard called repeatedly.
But the National Secretary, Network of Electricity Consumers Advocacy of Nigeria, NECAN, Uket Ogbonga, said: “In our organisation, we do not necessarily canvass for an electricity tariff increase. What we believe, based on available evidence is that the cost elements that govern tariff have increased tremendously in recent times.
“For instance, the foreign exchange rate has increased to N765 per dollar, from the previous N410 per dollar. The inflation rate has risen to 32 per cent, from 12.5 per cent. Even the prices of gas and other items have also increased, thus making it difficult for operators to bear.
“The proposed tariff review is not debatable. It is something that must happen because it is regulatory in nature. The facts and figures are there. It is just a matter of time.”
Moves toward public hearing
Meanwhile, checks by Vanguard, weekend, indicated that NERC has already completed its review of the proposal by the Discos, justifying the urgent need for the tariff review.
It also showed that many stakeholders, especially households and manufacturers, have concluded plans to feature and make presentations.
Speaking with Vanguard, yesterday, the Executive Director, Spaces for Change, a non-profit organisation working to infuse human rights into social and economic governance processes in Nigeria, Victoria Ibezim-Ohaeri, said her organization will attend because of its importance.
Consumers, others kick, set agenda for FG
However, the National President, Oil and Gas Service Providers Association, Colman Obasi, said he remained opposed to the proposed tariff increase.
According to him, the Electricity Generation Companies, GenCos, Transmission Company of Nigeria, TCN and the DisCos, have not been able to generate, transmit and distribute adequate and stable electricity to consumers, despite previous upward tariff reviews.
He explained that barely nine years after privatization, investors who bought the various power assets, had not invested much resources to build capacities in order to increase supply to consumers.
Relying on data released by the Energy System Operator, a semi-autonomous body of TCN, Obasi noted that electricity supply remained at about 4,000 megawatts, MW, adding that this was insignificant, considering Nigeria’s 200 million population.
He said: “President Bola Tinubu has expressed commitment to the welfare of Nigerians. But some of his policies, especially fuel subsidy removal, have thrown citizens into abject poverty.
“I do not think we need to increase tariff now. Rather, the government should encourage increased rapid investment to deliver more power to Nigerians.
“The government should also work with other parties to ensure every consumer has a prepaid meter in order to stop the current exploitation and extortion through the so-called estimation.”
Another consumer, who pleaded anonymity, said: “As a suffering consumer, I do not care about the figures they are throwing at the public. What I need is a prepaid meter. I need a prepaid meter, so I can at least know what I am paying for.”
DisCos file application for review — NERC
In a notice obtained from its website by Vanguard, NERC disclosed that 11 DisCos have already filed an application for the tariff rate review while requesting consumers to respond.
The commission stated: “Pursuant to Section 116 (1) and 2(a&b) of the Electricity Act 2023 and other extant rules, the eleven (11) successor electricity distribution companies (“DisCos”) have filed an application for rate review with the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”).
“The request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations and sustainability of the companies.”
Request for comments
The commission stated: “Accordingly, the commission hereby invites the general public for comments on the rate review applications by distribution licensees. Interested stakeholders are advised to review and take into consideration the excerpts of the Rate Review Applications filed with the commission by the respective licensees. The applications can be accessed on the commission’s website at www.nerc.gov.ng.
“As part of the rule-making process and in the exercise of the powers conferred by the Electricity Act, the commission shall conduct a rate case hearing on the applications, prior to making a ruling.
“Any person wishing to participate in the proceedings as an intervenor should forward his/her application to tariff@nerc.gov.ng before close of business on 20th July 2023. The Request to participate shall include an explanation of the person’s interest in the proceeding and how the party would be affected by the outcome of the Application; and a description of the party’s concerns, observations comments and/or objections to the application.
“All members of the public and stakeholders are encouraged to send their comments or representations before the close of business on 20th July 2023.”
