Consumers fault new electricity tariff regime

ELECTRICITY consumers across the country have continued to register their displeasure over the introduction of new tariff, which they claimed does not commensurate with the quality of power supply delivered by the power firms.

   The aggrieved consumers were worried that the services of the power firms have not improved after one year into the privatization regime. Indeed, the poor and inefficient metering by the Discos has been described as a major setback to the sector.

  Some of the consumers however urged the Nigerian Electricity Regulatory Commission (NERC) to ensure that distribution companies provide stable power supply and not lobbying for tariff increase.

  The complaints came from Abuja to Lagos, Ogun, Benin, Oyo and other states of the federation.

   NERC had in December last year approved a review of the Multi Year Tariff Order (MYTO) 2 regime with a take-off date for a disciplined electricity market by January 1, 2015.

   The commission’s Chairman, Dr. Sam Amadi, told NAN that the tariff review was aimed at improved service delivery.

  He explained that the increase was as a result of recent rise in the price of gas and other technical losses incurred by the power generation and distribution firms.

   He therefore stated that the distribution companies are now expected to implement their investment plans for metering and strengthening their networks.

   However, the Discos have lid emphasis on poor energy supply from the national grid due to insufficient generation capacity, as well as the poor transmission network.

   Generation report obtained from the Presidential Task Force on Power (PTFP) showed that energy generation as at January 5, 2015 stood at 3,400.93mega watt (mw), while the energy sent out was 3,324.05mw.

   The PTFP put the peak demand forecast 12,800mw, showing a shortfall of about 9476mw.

   Some of the consumers said that what the commission should have done was to prevail on the companies to provide stable electricity supply before increasing tariff. Indeed others believed that NERC has not done enough to protect the interest of consumers.

   Sylvanus Ocheme, a civil servant, in Abuja, said: "As a regulator, I expect the commission to monitor the activities of the distribution companies closely to ensure that they fulfill their promises of stable power supply to Nigerians." 

     Ocheme said that increasing tariff would not be a problem if electricity supply were stable, adding that the commission must ensure that the new companies did not operate like the old NEPA and PHCN.

 The Managing Director, Blue-Cool Refrigerator Limited, Lagos, Tunde Akinfenwa, in Aguda, advised NERC to ensure that all consumers were given prepaid meters.

  Akinfenwa said that consumers would welcome any increase in tariff if they were on prepaid meters, adding that they would pay as they use the power supply.

   “A situation where tariff is increased at a time when the billing system is still faulty not transparent and not credible is unfair and unjustifiable,’’ she said.

   A consumer in Ota, Ogun State, and Managing Director, Steel Perfects, Ajayi Olushola, lamented the outrageous bills issued by the Ibadan Electricity Distribution company, which he claimed was unbearable for the consumers.

   Olushola lamented that even residents around Obasanjo farm pay noting less that N12,000 on monthly basis, because they were billed on estimated billing.

 According to him, all efforts to approach the management and ensure a review of the situation were not fruitful. 

  Curtis Abba, water producer, said that the decision by NERC to increase electricity tariff was like putting the “horse before the cart”.

   " NERC as the regulator in the sector should have ensured that distribution companies provide stable power supply before reviewing tariff.

 "I think increasing electricity tariff at this time when Nigerians are still trying to adjust to the economic situation in the country is not proper," he said.

   Abba explained that the issue of non-installation of prepaid meters to consumers was a factor precedent to the review of electricity tariff.

   "If you notice, most consumers have complained bitterly about the issue of estimated billing by distribution companies which can only be solved by prepaid meters," he said.