Oil & Energy

Experts Fault NERC On Electricity Tariffs

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Some experts have faulted
the Nigerian Electricity Regulatory Commission’s (NERC) recent pronouncement that Power Distribution Companies (DISCOs) could now use the cost of operations to peg their tariffs.
The immediate past President, Nigerian Institute of Electrical Electronics Engineers (NIEEE), Mr Adekunle Makinde, said that NERC was deviating as a regulator if DISCOs were allowed to fix electricity tariffs.
Makinde said, “NERC is not doing their work of regulating the electricity tariffs again, instead, they are giving the investors free hands to fix the tariffs and this can lead to disorder in the sector”.
He expressed worry that while consumers all over the country were presently complaining that the present tariff structure was unacceptable, NERC was delegating its crucial functions to the DISCOs.
Noting that the private investors would not stop making profit at all cost, the ex-boss of NIEEE said the directive by NERC would definitely result to anarchy because the DISCOs would want something that would favour them, while the helpless consumers would not want to be cheated further.
Also reacting, the Chairman, Topean Energy Solution, Ikeja Lagos, Mr Yomi Kolawole said that it was not possible for DISCOs to consult consumers before fixing tariffs because it would not work.
“I don’t know how they will achieve this because it is not possible to gather all consumers together and be fixing the price of tariffs with them. I think NERC is not sincere with their new directives”, Kolawole said.
He expressed dismay that in March, the Chairman of NERC told consumers that the commission had slashed the tariff by 50 per cent and now turned around to say the DISCOs would fix it, and remarked that, “this has indicated that the commission does not know what it is doing.
Meanwhile,  the Assistant General Manager of Ikeja Electric, Mr Pekun Adeyanju said the DISCO had not received any directive from NERC on the new electricity tariffs.
“We only heard it on television and read it on newspaper; we are still awaiting the NERC directives. We are not part of the meeting, it was only for power generation and TCN”, he said.
Also, the Assistant General Manager, Public Affairs Division of Eko Electricity Distribution Company EKEDC, also said they had yet to get any directive from NERC.
The Tide recalled that the Chairman of NERC, Dr Sam Amadi, at the end of the commission’s meeting on April 8th said that DISCOs could fix their tariffs in consultation with consumers and subject to the approval of the commission.

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