By Udeme Clement

The plan by the Federal Government to increase electricity tariff in the country is no longer news. While some Nigerians expressed displeasure about the development, on the ground that electricity is not stable, others said government should tackle the power crisis first to ensure constant supply before increasing the tariff.

Accordingly, the Nigerian Electricity Regulatory Commission (NERC), said it has a unique tariff system that would allow companies producing electricity to improve their margin, unlike before, when the tariff was very low, such that investors were discouraged from putting their money in the sector.

NERC stressed that the current tariff on electricity consumption in the country is very low and below the production cost and supply, which is capable of hindering investments in the sector as no company wants to run at loss.

Our investigations revealed that the current power generating capacity stands at 3,400mw, showing a decrease of 400mw from the previous 3,800 realised in the first quarter of 2011.

President Goodluck Jonathan

Also, electricity generating capacity in the last quarter of 2010 was between 3,700mw and 3,800. In 2009, the sector witnessed just a slight increase in the level of outputs from the previous 3,500mw of electricity generated in 2008 to about 3,700 mw.

It follows that the 2009 economic year also brought more investments in the sector through the release of N59 billion, which then President Umaru Yar’Adua approved in the last quarter of 2008 for the sector through the then Minister of Finance, Dr. Shamsudeen Usman.

The initiative was to enhance execution of major projects in the sector, yet that year ended without any tangible achievement, even as the expectation to achieve 6,000mw capacity in December 2009 was not realisable. Sunday Business gathered that the N59 billion was the balance of the appropriation for power sector budget of 2008, from the total of N115 billion previously released.

Stakeholders who spoke with Sunday Business expressed their views thus:

Government should provide adequate gas to power the existing plants: Silas Igwe, Small and Medium Scale Entrepreneur:

Mr. Silas Igwe

Inadequate gas supply is also a major problem in the power sector. Government spends billions in building power plants everywhere in the country without adequate gas to power the existing plants. Before increasing the tariff, government should address the shortage in the supply of gas.

For instance, the previous government invested so much money in building power plants at strategic locations in the country, but lack of sufficient gas to power those plants made it difficult to generate electricity.

What happened to those power plants? What measures is government putting in place to ensure availability of gas supply to those plants? Are the existing power plants in good shape? These are questions government should answer before talking about increase in electricity tariff.

Also, in 2008, we were told that the government approved the Gas Master Plan to ensure availability of gas supply for generation, transmission and distribution of electricity to meet demands for domestic and industrial consumption of electricity in the country.

Has government fully implemented the provisions stated in the Gas Master Plan as well as the Gas Pricing Policy to boost development in the sector as earlier promised?

Government must not increase tariff without constant supply of electricity: Mr. Igwebike Dominic, Assistant General Secretary, Education and International Relations, National Union of Electricity Employees: 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 say it wants to increase electricity tariff when the power sector is not functioning well? How can they increase tariff when there is no electricity? Why does government want people to pay for what they are not using. We are against such move and want government to have a rethink on the issue”.

Mrs. Tokunbo Jakande

Government should invest in bio-fuel production to boost electricity generation: Mrs. Tokunboh Jakande, Director General, Green Energy Society of Nigeria (GESON). The prospects of a green economy development in Nigeria, which also has the capacity to boost electricity generation in the country are very bright.

GESON members are already leading the way. For example, in Ekiti, we are at present 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. Some members are engaged in energy efficiency projects across the country.

The Omotosho and Papalanto gas- powered electricity plants were designed and built by GESON. 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 our solar- powered street lights.

We should 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, we must move forward like the developed nations.

Mr. Tokunbo Korodo

Government should consider the low purchasing power of the masses: Western Zonal Chairman, National Union of Petroleum and Natural Gas Workers (NUPENG), Tokunbo Korodo: The Federal Government should not just increase electricity tariff without listening to reactions and wide consultation from all stakeholders.

The government should consider the low purchasing power of the citizens, especially the low income earners who may not have the financial capacity to pay for the new tariff.