Business & Finance

Mixed Reactions Trail Implementation Of New Electricity Tariff

Babatunde Fashola

The new electricity tariff  structure under the Multi  Year  Tariff Order (MYTO  2.1) approved  by  the  Nigerian  Electricity  Regulatory  Commission (NERC) which commenced yesterday is currently trailed by mixed reactions.

Some major stakeholders in the industry have warned that NERC would be charged for contempt since there are several court injunctions asking for stay of execution of the order.

Speaking with LEADERSHIP on phone on the issue, the president of Manufacturers Association of Nigeria (MAN) Jacob Udemba said any Distribution Company (DisCo) that flouts court orders would be charged for contempt accordingly.

“I don’t know about commencement or implementation of any tariff, but I can tell you that MAN went to court and obtained an injunction to that effect.

Last Friday, I led a team of MAN members to a meeting with NERC in Abuja and we had fruitful discussions. However, when the issue of tariff was raised I reminded them that the case is already in court.

On that note all stakeholders at the meeting agreed to set up a committee made up of MAN members. One of the terms of reference of the committee is to review the tariff considering our position and whereby an agreement is reached we shall all approach the court for out-of-court settlement.

So the committee has started work and until we reach a compromise and approach the court any act outside that is simply contempt and disregard to the law” Udemba explained.

Speaking further, the MAN president said that even if the DisCo’s have eventually commenced the implementation, MAN members should be excluded. “They can implement for other categories of consumers but certainly not for our members else they risk serious sanctions”, he warned.

Meanwhile, Ikeja  Electric weekend announced the commencement of its  new  tariff  structure.

Ikeja Electric’s Head of Commercial, Mrs. Folake Soetan, said the cost reflective tariff  would  boost  the  capacity  of  distribution  companies,  strengthen  the power value chain and  improve the quality of service to customers across the nation.

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According  to  Soetan,  the  new  tariff  would  further  drive  Ikeja  Electric’s continuing  investments  and  expansion  plans  to  ensure  sustained  excellent service delivery to all customers within its network.

Also speaking with Leadership yesterday, Godwin Idemudia head corporate communications of Eko Disco said, the new tariff means a lot to Eko Disco.

According to Idemudia, It would afford us the opportunity to have more funds to take care of our equipment and services to the people.

More revenue and investment in the system to meet the yearning and aspirations of our valued customers.

As for boosting performance, investment and revenue, the new programme will go a long way in this regard. The yield from the increase will surely be ploughed back into the system for network reinforcement, metering and general development of human and technical resources.

He also said under the new regime, the consumer has a lot to gain as the tariff structure has removed monthly fixed charge.

This simply means that the consumer now pays for only what he consumes unlike in the past when whether the customer consumes electricity or not he must pay the fixed charge.

“In some cases you may even have a situation where the customer will not pay as much as he was paying before because the fixed charge formed an integral part of some customers’ bill. In all, it’s a win-win situation for all stakeholders.

While the discos have more funds to invest for better services, the customer no longer pays that element of his bill against which he has all along complained” he said.

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