Opinion
Reduction Of Electricity Tariff: How Desirable?
The Nigerian Electricity Regulatory Commission last Wednesday announced the immediate reduction of electricity tariff by 50 per cent.
How did Nigerians welcome the news? Of what use will the tariff review be to the citizens? Our Chief Corresponent, Calista Ezeaku sought answers to these questions from some members of the public. Egberi Sampson was the photographer.
Mrs Ilanye Jumbo-
Journalist. Well, the reduction of that tariff, as good as it sounds, how many Nigerians will actually enjoy it. There is one thing in announcing something, but it is another ball game entirely to implement what has been announced.
Take for example the reduction of the fuel pump price. It was reduced to N87.00 per a litre, but as I speak to you now, people still buy fuel at N100,00, N110.00 per a litreand that is if you see it.
So, as good as it sounds, as good as it seems, as good as it is going to help Nigerians, the major thing should be that there should be an implementation body, the people that will ensure that the reduction is actually implemented because it may have been reduced but when you go to pay now, you begin to hear stories, they will begin to tell you one thing or the other.
Now, there are people who use the pay as you go meter, for them it will be easier to know their bills. But for those who don’t have it, what happens? How will the calculation be done? Some people are given estimated bill, how will they generate their bills? Ordinarily, when electricity tariff is reduced a lot of things ought to spring up, a lot business opportunities ought to spring up but my dear, in the case of Nigeria, it is not always the same, it is not as it ought to be. Under normal circumstance, a lot industries ought to spring up, to enjoy from that reduction but I tell you, it may not be the case. We may not even start enjoying it may be in the next one year. It may begin to have effect after one year if every thing works the way it ought to work. to enjoy from it.
So, I will advise the electricity regulatory agency, if they are there, to sit up. They should sit up and ensure that every of that statement is follow up to the later, because at the end of the day, it is the masses that suffer. Under normal circumstance the reduction should help the people save a little money and use it for other purposes. For instance if I was paying N5000,00 before and it is reduced to N2,500.00 that means I am saving N2,500.00, but how constant is the light? If there is no constant power supply, it means I am going to keep buying N1,000.00 worth of fuel everyday as I have been doing for many months now to power my generator.
So, I don’t want to be a pessimist, but I want to pray and believe that having reduced the tariff, we want to appeal to them to please give us power, but if they will not give us power, they should go back to the old tariff if that will make us have constant power.
Mr Iyaragba Ebinay Media Personnel. I heard the announcement over the radio yesterday and I was happy. If they will implement it I think it will help the poor to be able to pay their electricity bill, I just hope that with the reduction, the power situation in the country will not get worse. I don’t want to believe as some people insinuate that the reduction was done for political reasons. For the federal government to have announced the reduction, that means they have their own inner plan, which I believe will bring about improvement in power supply in the country.
Comrade Dan Otukpo-Civil Servant. Well the cut is quite okay in the sense that the bills that were coming before now were becoming too crazy and without a direction. No direction in the sense that today will get a bill, tomorrow you get something higher than what you expected. The cut also reflects government’s sensitivity to the current hardship being experienced in the country provided it does not have political undertone, provided that not after the elections we begin to see even more increase in the electricity tariff.
If you go by the pay as you go meter, you can actually see that you will save a lot by means of the 50 per cent cut. But if you go by the analog meter where in most cases they bring whatever they feel like by a way of estimation, you may not necessarily see much impact. The cut will tell more on the industries depending on availability of power. It will improve their economy because by giving 50 per cent I think they will be able to have large scale production not minding the price per a unit. It will help our producers, our companies to produce more. The economics of large scale will come into play-power reduction, more scale. It can also give room to the employment of more hands.
For me, the reduction is good. I don’t see it leading to any cut in power because before the reduction I believe there must have been a sort of consultative meeting with the stakeholders.
However, I will advise that government through its institutions and agencies should monitor the reduction to ensure strict compliance otherwise we will still be in Egypt.
Mr Innocent Eze-Businessman. Well, the reduction is what we have been yearning for all these while. We had wanted a situation where government will create enabling environment for business entrepreneurs because the power issue is a serious matter to us. Without power, we cannot actually deliver our services to the public. Without power, we cannot do what we are supposed to do. Also with the high rate of electricity tariff we are constantly struggling to see how we can meet up.
We find it very difficult to meet up because whatever profit we make goes back to paying electricity bills and most of the time they don’t give us power. We buy fuel, we buy diesel to run generators and all these are at a very high rate. And so, it looks as if we are just rigmarolling in what we are doing because what ever little profit we make is used in paying for power, buying diesel and that. If government has seen the need and has come to alleviate our plights by reducing the tariff of electricity, that will be a welcome development.
Let me mention that the problem of the Power Holding Company is corruption. If things are done the way it is supposed to be done, if they receive the genuine electricity bill that people pay and keep the money for government, it will be enough to improve the power situation in the country. But I want to believe that most of those monies they collect are not remitted into government purse.
If you observe, many a times they don’t read meters. They only come and do what they call estimation. If what you are supposed to pay in a month is may be N10,000.00 because they are doing estimation before you know it, it has gone up to about N50,000.00. And I want to believe that they will pay the amount they know you are supposed to pay into government’s account and the rest goes into their pockets.
So the only option to solve this problem and ensure that everybody benefits from the tarriff reduction is through the use of pre-paid meters. Everybody should have it.
Mr Idawari Cookey-Gam- Businessman. The problem is that there is no light already. If there is light they can say they are reducing tariff and people will enjoy it. What you have not seen, how can you enjoy the cut off. So let the light come first and then we can appreciate what the federal government is doing. The issue is that PHCN is not even better for us. Since they took over from NEPA there is no difference. They are worse than NEPA. So for me, the tariff cut makes no sense. It is not what we need now in the country.
Government should try and bring the dollar price down and reduce inflation, that is what we are looking for now.
Loot at what happened to the petroleum sector, government said the pump priced has been reduced to N87.00 but we still buy at N110.00. But people do not mind as long as the product is available, you buy it and go your way. So even if the tariff is raised provided we see light and enjoy it is better than reducing the tariff but nobody sees the light.
Mrs Lucy Bello-Osagie-Businesswoman. There is a particular amount that government say people that are using cut out should be paying every month. By cut out I mean without a meter, people that consume power without meter. They are supposed to pay N3,000.00 every month but now they pay N15,000.00, N20,000.00 every month. Even those of us that use meter are not better. Sometimes the bill you are given if different from the actual amount you are supposed to pay. If you are paying N7,000.00 and next month, you are asked to pay N25,000.00 for the same points will you like it? They just give us bills arbitrarily and it is not good. So government should really look into the Power Holding Company and those working there. A lot of corrupt practices are going on there. You will see that some NEPA officials will come to record the bill, somebody’s meter is reading something and what they are recording is different. If the person’s meter is reading N8,000 they will record N15,000 and when you go to their office they will post you from one table to another.
I don’t even have power in my house now. Look at my cooler, I have been using ice-block for my business for over a year. I don’t have light for over a year and they are billing me over N200.00, from where? So the tariff reduction is a good thing but it cannot impact on the lives of the masses unless corruption in PHCN is tackled.
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