New Electricity Tariff Confusion

Despite protest by the organised labour
and the drop in power generation and
supply nationwide, the Nigerian Electricity Regulatory Commission, NERC, appears to have ignored the directive of the Senate to suspend the 45 per cent tariff hike. NERC insists that the upper chambers lacks the authority to reverse the implementation of a new tariff.
The Senate had based its directive on the fact that NERC did not consult with stakeholders before introducing the new tariff; the Senate also raised the issue of the failure of the electricity distribution companies to provide prepaid metres as precondition for any new tariff regime.
But, justifying its stance, NERC described the Senate directive as unconstitutional and a direct encroachment on executive independence. The commission argued that apart from the fact that the Senate lacks the right to give such a directive, NERC, as currently constituted was not competent to suspend or rescind on the tariff increase concluded by its former Board.
According to the commission, until a new Board was constituted to consider reviewing or totally suspending the order, nobody anywhere can validly review or suspend the current tariff. The position of NERC is strongly supported by the distribution companies, Discos, who are also insisting on increasing tariff on all categories of customers without commensurate increase in electricity supply.
Unfortunately, the declaration by NERC came as power generation in the country plummeted to 3,664 megawatts. The drop is blamed on machine failures as well as the inability to secure foreign exchange to replace them. So far, the hope of remedying the situation seem to be far fetched following the overall crisis the country is facing with foreign exchange.
Against this backdrop, and the attendant hardship the new electricity tariff would inflict on Nigerians, the organised labour led the agitation against the new tariff and demanded that the Senate’s directive be respected and effected. Labour had gone on to picket the Discos over the matter, while a concerned Nigerian had also taken the matter to court, yet NERC has ignored them all.
The Tide views the stance of NERC as disrespect of the Nigerian Senate, the court and the yearnings of the Nigerian people and is most condemnable. It is sad that NERC would embark on this rampant impunity even as a Minister of the federation may have insinuated that nobody has the right to stop the increase in tariff.
The fact that the Federal Government is backing this exploitative move by NERC without first taking into consideration that even before the increase, Nigerians pay the highest tariff per kilowatt in Africa. Rather than get some reprieve, consumers are made to face more hardship. This is anti-people.
More painful also, is the total neglect of the need to ensure adequate power generation and to compel the Discos to replace all failing equipment and ensure that charges on consumption are made via the installation of prepaid metres for all consumers.
We believe that if NERC dares to act above the law, and labour reacts, it will be an ill wind that will blow nobody any good. The fact is that the ability of the average Nigerian to cope under the prevailing financial situation in the country is becoming doubtful.
Within the period, the price of fuel has gone up, cost of living has doubled, because of the fall in the value of the Naira. It is common economics that high cost of food and goods generally would become the norm. Yet, instead of increasing salaries, efforts are on to reduce workers pay. Infact, many have been relieved of their jobs owing to the unfavourable economic situation.
This cannot happen when some peculiar challenges are yet to be solved with electricity generation, transmission and distribution in Nigeria. Not when the Discos continue to exploit the consuming public. The time has come for the right things to be done.
We demand that if any Disco or GENCO does not have the capacity to fix the power system, it should borrow a leaf from the Yola Electricity Company and honourably surrender its possessory and proprietary rights to government. No longer should few individuals or companies or institutions be allowed to plunder and plunge the nation into avoidable hardship.
So far, the noise in the sector is confusing and disturbing. Every attempt to continue to strangulate the electricity consuming public through the introduction of unfriendly policies should be resisted by all. In fact, nobody or group even the Nigeria Electricity Regulatory Commission should be allowed to think or act as though they are above the law.