Business
Electricity Consumers Express Divergent Views On New Tariff
Some stakeholders have ex
pressed divergent views on plans by the Nigerian Electricity Regulatory Commission (NERC) to review electricity tariff from Feb.1.
While some told newwsmen in Lagos that the new tariff regime was good, others said it should be suspended until all consumers were metered.
It was gathered that NERC, on Jan. 6, said the takeoff date of the new electricity tariff regime (MYTO 2015) still remained Feb. 1.
According to reports, NERC, had on Dec.20, 2015, increased the cost of power consumption by an average of N9 per unit for all classes of consumers.
It also abolished the contentious fixed charge for all electricity consumers.
The Chairman, Citizens Access to Electricity Initiatives (CATEIN), Mr Abdul-Salam Fashola, urged NERC to stop any increment and have audience with the stakeholders in power sector.
Fashola said that consumers on estimated billings, who were paying outrageous amounts as bills, would now be expected to pay more.
He advised that prepaid meters should be given to all consumers and that power supply should be regular before the commencement of new tariff regime.
The Chairman, Lekki Jakande Roundabout Estates Association, Mr Patrick Samuel, commended the stoppage of fixed charge, saying that it was a good decision.
“The Discos have been using fixed charge to extort consumers on the pretence that meters are not available or they fix high rates for meters which consumers can’t afford.
“Yet consumers don’t ever get the power even with the fixed charges.
“It was expected that on the purchase of the Discos by private investors, knowing that over 65 per cent of consumers do not pay bills, the Discos should have done mass importation of affordable meters and install all their consumers.
“Rather than investing in what they bought and building on them, they are more into collecting loans for other purposes without investing into improved services,” he said.
Samuel said he was against any increment, urging the new investors to put their places in order and give quality services before the government would give them right to increase tariff.
“That will just be a rip off; it’s too early for that.
“ Let them give good services to justify any increase in tariff because I can assure you that if they increase the tariffs now, half of what they rake in will not go into power,” he said.
The Managing Director, Energy Solutions Ltd., Mr Yomi Kolawole, said that the proposed increment would enable the Discos to replace their old equipment.
He advised consumers to cooperate with the current administration by allowing the new tariff to commence.
Kolawole, however, commended NERC for the removal of the fixed charge since the monthly charges could not be justified.
The Chairman, Iponri Housing Estate Housing Residents’ Association, said that the proposed increment was good if power supply would be available.
“If we should consider the amount of money spent to fuel our generator on daily basis, we will see that it is better to pay more on regular electricity supply than to pay what we are paying and no light.
‘We should give the current government the benefit of the doubt by allowing the new tariff regime to commence.
“I am aware of many good jobs done by the new minister of power, land and housing when he was governor of Lagos State and I believe that he is in power sector to transform the sector,” he said.
He also commended NERC for removing fixed charge from the monthly billing, adding that the Discos were using the rate to exploit their consumers.
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Sugar Tax ‘ll Threaten Manufacturing Sector, Says CPPE
In a statement, the Chief Executive Officer, CPPE, Muda Yusuf, said while public health concerns such as diabetes and cardiovascular diseases deserve attention, imposing an additional sugar-specific tax was economically risky and poorly suited to Nigeria’s current realities of high inflation, weak consumer purchasing power and rising production costs.
According to him, manufacturers in the non-alcoholic beverage segment are already facing heavy fiscal and cost pressures.
“The proposition of a sugar-specific tax is misplaced, economically risky, and weakly supported by empirical evidence, especially when viewed against Nigeria’s prevailing structural and macroeconomic realities.
The CPPE boss noted that retail prices of many non-alcoholic beverages have risen by about 50 per cent over the past two years, even without the introduction of new taxes, further squeezing consumers.
Yusuf further expressed reservation on the effectiveness of sugar taxes in addressing the root causes of non-communicable diseases in Nigeria.
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