A fortnight ago, the Nigerian Electricity Regulatory Commission (NERC), hiked electricity tariff despite several resolutions against it by the Senate. TAIYE ODEWALE reports on the hike and the seemingly ambushed Senate, that was on recess when the decision was taken
Electricity Tariff
Since the privatisation of the Power Sector in November 2013, the electricity Distribution Companies (DISCOs), have been complaining of inappropriate pricing of kilowatts used by electricity consumers, which made the federal government to be subsidizing the sector to the tune of N2trillion per year.
But despite the subsidy still being provided for the sector by the federal government, the DISCOs, still finds it difficult to supply enough kilowatts of electricity for consumers in the country arising from gross inadequate megawatts of electricity generated by Generation Companies and very weak, moribund and obsolete transmission lines still being controlled by the federal.
Specifically, despite the privatisation, power generation in Nigeria still hovers from 4,000 to 5,000 megawatts as against average of 30,000 megawatts required for 20 to 24 hours electricity supply to consumers across the country on daily basis.
Move to get out of the quagmire
As a way of getting out of quagmire of epileptic power generation and distribution in the country, the federal government through the Nigerian Electricity Regulatory Commission (NERC), took steps to address the problem of inappropriate pricing cited by DISCOs as one of the reasons for poor performance over the years.
In doing this, the Vice Chairman of NERC, Musuliu Oseni, two weeks ago, announced an increase of 340% in electricity tariff for customers under the Band ‘A’ classification, which according to him, would make the affected customers pay N225 kilowatt per hour from the current N66 and enjoy 20 hours electricity supply per day.
Relatively, the appropriate pricing for other bands like B, C, D and E, according to him, would also be made later in the year.
Outrage over the decision and Senate’s opposition
Spontaneously, after the announcement, Nigerians across the various sectors reacted, with majority of them, vehemently kicking against the policy.
Apparently taken aback by the decision, the Senate within 24 hours of announcement of the decision, kicked through a statement issued by its spokesperson, Senator Yemi Adaramodu (APC Ekiti South).
Adaramodu in the statement said: “The Senate will not abandon Nigerians to their fate over the recent hike in electricity tariff for certain categories of customers and similar plans being made for other categories of electricity consumers in the country.
“Relevant Committees of the Senate are watching the situation and would take a position favourable to Nigerians on its resumption.
“Specifically, the Senate Committee on Power is studying the situation.
“We are on recess now. When we resume, the committee will present its findings to the Senate at plenary. We won’t abandon Nigerians at this critical time just as the Senate would not show indifference to any policy that would add to the economic burden of Nigerians”.
The Senate had in February this year rejected the pronouncement by the Ministry of Power to approve the proposed hikes in electricity tariff by Distribution companies just as it did last year when similar move was made.
The rejection of hike in electricity tariff by the Senate, through a motion sponsored by Senator Yunus Akintunde (APC Oyo Central), led to “let the poor breath” resolution adopted which created controversy in the polity.
The Red Chamber as part of its resolutions this year against hike in electricity tariff, directed its Committee on Power to investigate the N2trillion required for electricity subsidy payment, other debts owed in the sector, and the state of metering in the country.
The resolutions were sequel to the consideration and approval of a motion moved by Senator Aminu Abbas (PDP, Adamawa Central) during plenary in February on the need to retain subsidy on electricity in the country for the foreseeable future.
Bitter pill to swallow
Also kicking against the policy, the Chief Whip of the Senate, Senator Mohammed Ali Ndume (APC Borno South), in a personally signed statement penultimate week, said: “The news of the increment came to me and many of my colleagues as a shock. It also came at a time when the National Assembly was on a break.
“Personally, I think the timing of this hike is very wrong. Nigerians are grappling with many challenges. To put this fresh responsibility on them is very unfair.
“Nigerians are yet to recover from the fuel subsidy removal of last year. Many Nigerians are still grappling with the ripple effects that removal had on them. To now come up with this, is wrong.
“I believe that the timing is wrong. There ought to have been some consultations, especially with the National Assembly as representatives of the people. We were not consulted. We saw the news like every other Nigerian.
“The inflation is still very high. The prices of food commodities, drugs, transportation, school fees, and other daily expenditures are still on the high side. To now add this new burden is unfair.
“The minimum wage has not been increased. Many state governments are yet to even pay the current minimum wage of N30,000. How do we expect the people to survive? We’ve to be very realistic and feel the pulse of the people we represent as a government.
“For me, I think the Federal Government should first of all provide stable electricity, reduce the inflation, stabilize the naira, and prices of food commodities. Then, the purchasing power of Nigerians must significantly improve before we can place a fresh responsibility on them as a government.
“The federal government needs to give the National Assembly the opportunity to also step in and consult because we represent the people. We feel their pulse, and we know what they’re going through right now. The decision to me, is a bitter pill to swallow by Nigerians”.
Aside from the Senate, voices of dissents against the policy, also came from the House of Representatives as well as in the larger society where critical stakeholders in the polity, like the Nigeria Labour Congress ( NLC), vehemently kicked against it.
Obviously as the Senate and House of Representatives resume plenary soon, Nigerians await resolutions to be taken against the policy which may, however, not produce the desired result, having been ambushed by NERC which came up with the decision when the two chambers were on recess.
