By UDEME CLEMENT

The decision by Nigerian Electricity Regulatory Commission (NERC) to approve an increase in electricity tariff by over 50 per cent from January 2012 is no longer news. The increment, according to NERC, was in line with the on-going reforms in the power sector. The commission said that consumers with single phase meters would pay between N10.85 and N14.60 per kwh as against the current rate of N7.30 per kwh, while customers currently paying N11 per kwh would pay between N16.50 and N22 .

The residential category of the lowest paying customers at the current rate of N2.20 per kwh would pay between N3.30 and N4.40 while the highest paying consumers at the rate of N15.60 per kwh would pay between N23.40 and N31.20 under the new tariff.

Accordingly, NERC, which is charged with the statutory function of effecting major reviews of electricity tariff every five years in line with the provision of the multi-year tariffof MYTO, effected 10 per cent increase in electricity tariff in 2009. In 2009, the cost of electricity per unit was N7.00/kw,in 2010 it went up to N8.50/kw and moved to N10/kw by July 2011.

MYTO was introduced in 2008 to ensure a paradigm shift from the traditional price fixing to a cost reflective tariff driven by private investment in the power sector. The initiative was to move the sector from the previous monopoly structure to the current competitive market environment, where investments could maximise required outputs, even as NERC says low tariff would not attract investors who are ready to put their money into the sector, which requires massive investments to thrive.

UnderMYTO, costs incurred by the electricity operators like gas, inflation and exchange rates are borne by the consumers and changes in the costs are reflected in the annual tariff reviews.

Massive investment in bio-fuel will boost electricity generation –  Mrs. Tokunboh Jakande, Director-General, Green Energy Society of Nigeria (GESON):Government should invest massively in green economy through bio-fuel production to enhance electricity generation in the country.

The prospect of developing green economy in Nigeria , which has the capacity to boost electricity generation is very bright. For instance, the plant that utilises bagasse, which is the by-product obtained from crushed sweet sorghum stalks is capable of generating electricity.  GESON members are already leading the way.

For example, in Ekiti, we are presently working with GESON members who would soon start producing bio-ethanol and bio-diesel from agricultural feedstocks. Our dams at Itapaji, Ero, Egbe and Ureje are to be developed to generate hydro electric power.

Our members are engaged in energy efficiency projects across the country. We have Omotosho and Papalanto gas-powered electricity plants already designed and built.  Some of our members are daily producing bio-diesel for MTN to run their transmission stations.

If you drive around the streets of Ado , you would see the pervasiveness of our solar-powered street lights. Government should invest tangibly in the bio-fuel sub-sector to put the country on the way to a vibrant green economy, which would be capable of stimulating development in other sectors of the economy.

We must not continue to depend on the fossil economy forever. Fossil is responsible for global warming, so we have to produce alternative energy to power the economy without harming our environment. For Nigeria to achieve the Vision 20:2020 target, we must move forward like the developed nations.

Government should make electricity available first— Mr. Igwebike Dominic, Assistant General Secretary, Education and International Relations, National Union of Electricity Employees (NUEE).

Our position is that government should make electricity available and affordable for domestic and industrial consumption before talking about increase in tariff. Government must not increase tariff without constant supply of electricity.  Why is government trying to increase tariff when there is no constant supply of electricity. So, we are still saying no to increase in electricity tariff at the moment.

That means government want the citizens to pay for what they are not benefiting. Government should encourage private sector participation in the production and distribution of electricity in the country. This would enhance power generation capacity in the country for industrial growth.

The union is not in support of increase in electricity tariff when there is epileptic power supply in the country. We totally condemn such plan. Why should government embark on increase in electricity tariff when the power sector is not functioning well? We are against such move and we want government to have a rethink”.