MAN, CSOs in faceoff with NERC, Discos over tariff hike

Consumers of electricity, the Manufacturing Association of Nigeria (MAN) and several Civil Society Organisations (CSOs) on Tuesday in Abuja condemned plans by the Nigeria Electricity Regulatory Commission (NERC) and Electricity Distribution Companies (Discos) to effect an increase in electricity tariff.
The groups at a public consultation on Extra-Ordinary Tariff of NERC noted, that the power firms had to first work on efficient power supply before taking about tariff hike.
The proposed new tariff, according to the commission showed that R2 customers of Abuja Disco will have 79 per cent increase, Benin Disco 63 percent and EKo Disco, 25 per cent.
The R2 customers of Enugu would get 103 per cent increase, Jos, 55 per cent and Ibadan, 28 per cent among others.
But the opponents of the tariff hike complained about the refusal of the Discos to provide meters for their customers and lack of power supply.
An official of MAN, who spoke during the meeting, said NERC was putting the cart before the horse by thinking of tariff hike at a time there was no electricity to supply.
NECAN’s Assistant Secretary, Mr. Oboma Ekoh said: “NECAN is totally opposed to any tariff increase at this moment.”

Read also: Residents, Enugu DISCO square up over electricity tariff

According to him, the association did a survey in all the states of the federation and the Federal Capital Territory, adding that the response was very clear. “There is an outcry from Nigerians that any increase in electricity tariff will amount to very serious consequences, especially to the micro, small enterprises,” he said.

He said the businesses of his members are sustained by electricity, warning that any hike will send them will throw workers into the labour market.
CSO convener, Mr. Ezenwa Nwagwu accused the regulator of colluding with the power firms at the detriment of the citizens.
According to him, the customers supplied cables, transformers and other electricity components, lamenting that what they get in return is tariff hike instead of power supply.
Asked to comment on alleged inefficiency of the Abuja Electricity Distribution Company and whether the firm still deserves any hike, NERC Chairman Dr. Sam Amadi, said there is a level of inefficiency caused by lack of effectiveness of the distribution companies.
He however noted that “tariff is not a means of punishment. A tariff is something you are entitled to.”
Amadi said the firms need cost-reflective tariff to be efficient.

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