News

April 14, 2015

Energy experts fault NERC’s new directives on electricity tariffs

Energy experts fault NERC’s new directives on electricity tariffs

Electricity

Lagos—Some energy experts yesterday faulted the Nigerian Electricity Regulatory Commission’s (NERC) recent pronouncement that Distribution Companies (DISCOs) could now use the cost of operations to peg their tariffs.

Electricity-newThey told the News Agency of Nigeria (NAN) in Lagos that the suggestion could create anarchy because the DISCOs would implement policies that favour their operations.

The Chairman of NERC, Dr Sam Amadi, had on April 8 said that DISCOs could fix their tariffs in consultation with consumers and subject to the approval of the commission.

Amadi made the pronouncement in Abuja at the end of the commission’s monthly meeting.

Mr Adekunle Makinde, the immediate past President, Nigerian Institution of Electrical Electronics Engineers (NIEEE), said that NERC was deviating as a regulator if DISCOs were allowed to fix electricity tariffs.

“NERC is not doing their work of regulating the electricity tariffs again; instead, they are given the investors free hands to fix the tariffs and this can lead to disorder in the sector.

“Presently the consumers all over the country are complaining that the present tariff structure is unacceptable and you are delegating your functions to DISCOs.

“These are investors who will not stop at making profit at all cost. This directive will definitely result to anarchy because the DISCOs would want something that will favour them, while consumers will not want to be cheated,” he said.

Mr Yomi Kolawole, the Chairman, Topean Energy Solution, Ikeja, Lagos, 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.

“In March, the chairman told consumers that they have slashed the tariff by 50 per cent and now the DISCOs will fix it.

“This has indicated that they do not know what they are doing in that place,” he said.

Meanwhile, Mr Pekun Adeyanju, the Assistant General Manager of Ikeja Electric, told NAN that 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.

Mr Godwin Idemudia, the AGM, Public Affairs Division of Eko Electricity Distribution Company (EKEDC), also said that they had yet to get any directive from NERC, adding that  he could not comment further on the new tariffs fixing system.