The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said Nigerians should stop going to court to stop electricity tariff review, describing the planned review as necessary.

Fashola stated this on Thursday at a public lecture organised by the Department of Economics, University of Lagos, where he spoke on the power sector reform in Nigeria, challenges and the way forward.

He said he fully supported the privatisation of the power sector, adding, “I believe, however, that the privatisation that we did in 2013 was well-intentioned but delivered with some deception.”

The minister, however, opposed the calls for the cancellation of the privatisation from some quarters, but highlighted the need to rework the process and make it work.

Speaking on tariff, he stated, “Tariff is not fixed by the minister; I don’t fix tariff. I have no power over it. What happened during the last tariff exercise was that I expressed an opinion of support for the tariff.


“Tariff is fixed by the Nigerian Electricity Regulatory Commission. Tariff proposals come from your Discos who should have met with you at consultative meetings. When tariff meetings are called in the future, everybody must be there.”

According to the minister, there are major and minor tariff reviews, and a major review is due every five years, but a minor review is due every six months.

“It doesn’t mean every time a minor review is due, the tariff will increase. If exchange rate is N165 (to a dollar) when the tariff was reviewed and then it goes to N400, put yourself in their shoes,” he said.

Describing tariff reviews as a necessary part of any business, he cited Singapore as one of the countries that had really implemented tariff review for all of its utilities effectively.

Fashola said, “We must stop going to court. I know some lawyers don’t like this. To get injunction to stop tariff reviews, it puts us in the news for the wrong reasons.


“Government must also not interfere with tariff. One of the things that happen in the last elections was that as the elections were coming, the last administration reduced tariff in order to make you and I like them. But it created a massive debt for Nigeria.”

He added that when the government ordered the tariff reduction, it did not reduce interest rates, the exchange rate cost of wages of the staff that were generating power or the cost of gas and other inputs.

The minister said the capacity of the power grid had expanded to 6,200 Megawatts under the President Muhammadu Buhari administration following the completion of some transmission projects.

He said, “When the National Integrated Power Project started, that is over 10 years ago now, several contracts were issued to develop transmission projects. Many of the equipment that were imported by the contractors were trapped at our own ports in 800 containers for almost 10 years, because the government did not budget to pay those contractors.”

The minister said the capacity of the power grid had expanded to 6,200 Megawatts under the President Muhammadu Buhari administration following the completion of some transmission projects

wristbangle:
Hmmm! The problem is not about the increase in the tariff rate but the real problem is after the increment, will power supply improve? We all know the answer.

The most annoying thing is those without prepaid meter who get estimated bill from DISCOS will have to pay more now yet not enjoy power service.

The ministry of power needs to get things right and regulate the NERC, GENCOS and DISCOS because they are thieves

CROWNWEALTH019:
I thought they said fashola got sense....

SalamRushdie:


What are you even saying? This is the same tone he used just over a year ago when he increased our electricity tariff by 50 percent and till now not a single improvement has been seen .

wristbangle:


We are still on same page. It was increased by 50 percentage yet no significant effect. The discos are using exchange rate to count their losses when we know they are hiding under that camouflage to siphon more money.

I am very sure the situation of power would not get better even if the price is review 200 percentage.

The ministry of power, NERC, GENCOS and DISCOS are corrupt but the last two are the real monsters in the power sectors.

SalamRushdie:


Instead of Fashola to concentrate on getting the DISCOS to start accepting 100 percent of the power wheeled to them by GENCOS he is talking of Tarrif increase when the DISCOS especial that useless EKO disco is primarily neck deep in the evil business of selling darkness to consumers in the 21st century while they reject 70 percent of the power sent thier way by GENCOS, the practice of selling darkness is one of the most hideous economic and consumer crime I have come across and Fashola keeps proving me right that he is a part of it.

connectpoint:


Fashola is the god-son of a tax collector, what he knows best is to collect task. AS the minister, should he not be over-seeing the production, transmission, distribution of power, up to maintaining the amount of power distributed and the distribution of pre-paid meters...rather he turned around and is making life hard for himself not Nigerians, under his watch power has appreciated by over 300% per unit charged, now he's calling for another review...It's clear Fashola doesn't know his role as a Minister...what an empty barrel

jjjjj2017:

God bless you for this wonderful write up sir, its high time Nigerians wake up from their slumber.
Good morning sire

connectpoint:


Fashola is the god-son of a tax collector, what he knows best is to collect task. AS the minister, should he not be over-seeing the production, transmission, distribution of power, up to maintaining the amount of power distributed and the distribution of pre-paid meters...rather he turned around and is making life hard for himself not Nigerians, under his watch power has appreciated by over 300% per unit charged, now he's calling for another review...It's clear Fashola doesn't know his role as a Minister...what an empty barrel

jjjjj2017:

Fashola is overrated

SalamRushdie:
God punish Fashola, this same man begged us to allow a 50 precentor tariff increase a about a year ago as a pre requisite for better electricity supply , he got his increase and yet power supply dropped instead with consumer paying far more for far less power and instead of this ineffectual masses hater to apologise he is here again asking for tariff increase in which he might even have a kick back percentage embedded in it ..Fashola is clearly in cahoots with the greedy DISCO firms with the sole objective to impoverish the Nigerian people on the altar of his personal greed ..This is how this same Fashola collected toll for years and spent govt fund for year in the Lekki Epe road hiest and didn't ever bother completing the road immediately he had achieved his aim of building the toll gate .

arushiuga:
See what this goat of a minister is saying. Are you saying we should be paying for darkness.