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Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola - Politics - Nairaland

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Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Ehiscotch(m): 9:20am On Jul 15, 2017
…take it from the horse’s mouth: Jonathan did not reverse any tariff. Sam Amadi and his colleagues changed the tariff through the normal due process and as part of effective regulation of the sector.

I have read some piece of news suggesting that Dr. Goodluck Jonathan ordered the reversal of electricity tariff during his tenure as president. Since I left office I have avoided issues concerning electricity regulation in Nigeria, to give our successors the best opportunity to do better than we did. My understanding of public office that the best a former public officer should do is to truly step aside and be willing to provide advice if and when it is needed. In the best tradition of public service, you don’t obstruct the new administration.

But I am constrained to restate the truth of what happened for the purpose of ensuring proper information to enable the present administration do its best in fixing the electricity crisis. Throughout our five years as commissioners of the Nigerian Electricity Regulatory Commission (NERC), there was no single day that President Jonathan ever dictated or instructed on policy to the Commission, in relation to any issue on electricity regulation. I am bold to state that President Jonathan was a great leader to the electricity sector for fully supporting the independence of the regulator. My colleagues and I were determined to maintain the independence of the regulator and we found a very understanding person in the former president.

As expected, we made mistakes or took decisions which in retrospect may not have been optimal. This is expected in human society, hence development and transformation are iterative, adaptive and path-dependent.

On the matter of the tariff, the facts are straightforward and borne out by records. NERC as a regulator has a comprehensive methodology and business rules for managing tariff. The NERC Act, methodology and business rules put the responsibility on NERC commissioners, who vote democratically for every such decision made, just like the Board of Governors of the Central Bank of Nigeria does on monetary policy. Every tariff we have issued from 2010 to 2015 did not receive or require the approval of the president; only NERC Commissioners decided on these.

Before issuing MYTO 2.0, we debated on what to do with the collection losses of DisCos from consumers. Two schools of thought then emerged among the commissioners: One, supported by most Commissioners, wanted the collection losses to be reduced to zero or to the low level of the pre-privatisation DisCos. The other school wanted us to keep it as contracted by DisCos and the Bureau of Public Enterprise, even as it skyrockets the tariffs. After much debate, the overwhelming position was to reduce the collection losses. When the draft of the tariff was issued, the DisCos protested and the commissioners had a rethink, revised the model and issued MYTO 2.0 that saw more than a 180 percent tariff increase for a number of customers in some DisCos.


…let’s not be under any illusion that fixing tariff would fix the electricity crisis in Nigeria. This is a falsehood. In fact, privatisation, as desirable as it, does not solve the problem. Obviously, there was a design problem with the reform of the electricity industry.

Manufacturers and other customer groups protested this astronomical hike in prices and sent in a formal petition. NERC’s business rules require it to reconsider a tariff when an aggrieved customer petitions it within 60 days of the issuance of a tariff order. On the basis of the petition, NERC held a public hearing at Sheraton Hotel with all DisCo heads and some consumers groups, where the details of the tariff were presented and criticised. After the public hearing, the Commission set up a technical committee to review the allegations and conduct jurisdictional research on how other electricity markets treat collection losses.

The NERC technical team recommended that the collection losses should be set at zero and that any DisCo wanting to have collection losses above zero should apply, with evidence of its diligent efforts to control losses. This recommendation was presented to the industry meeting where the DisCos totally rejected it, expectedly. The NERC commissioners nevertheless approved it through the usual process of decision-making and consequently reduced the revenue requirement of the DisCos, which then resulted in lower tariffs for most customers.

This was a controversial but principled decision based on contestable evidence and value-based analysis. I am prepared to take flacks for any intended or unintended consequences of that decision as the chairman and chief executive of NERC. I still strongly believe that my reading of effective regulation confirms that it was a good decision to internalise efficiency in the distribution segment of the electricity industry. But President Jonathan played no role at all in that decision. His ministers did not play any role. It was a bona fide regulatory decision that may be termed wise or unwise, after the facts. But should not be used to denigrate President Jonathan or the ministers of Power.

The electricity industry is difficult to manage and regulate anywhere. It is a difficult job for anyone. So, we should support this government and its officials as they work hard to improve the situation. But let’s not be under any illusion that fixing tariff would fix the electricity crisis in Nigeria. This is a falsehood. In fact, privatisation, as desirable as it, does not solve the problem. Obviously, there was a design problem with the reform of the electricity industry. This is the focus of my book in the making on reform policy in Africa.


But for now, take it from the horse’s mouth: Jonathan did not reverse any tariff. Sam Amadi and his colleagues changed the tariff through the normal due process and as part of effective regulation of the sector.

Sam Amadi is a lecturer in Law at Baze University, Abuja.bhbb

http://opinion.premiumtimesng.com/2017/07/15/jonathan-did-not-order-reversal-of-electricity-tariff-by-sam-amadi/

44 Likes 8 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by mrnigerdelta: 9:33am On Jul 15, 2017
fashola is a brainless idiot

230 Likes 13 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Ehiscotch(m): 9:35am On Jul 15, 2017
But you made a very wrong and costly call.

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Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Nobody: 9:36am On Jul 15, 2017
tongue
Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Nobody: 9:37am On Jul 15, 2017
Ehiscotch:
But you made a very wrong and costly call.
I expect you to dispute that and not coming out to defend GEJ.
You were part of the administration .
Is your medulla oblongata functioning well? GEJ did not order price reduction at all. Not to talk about political reasons. Fashola needs a serious lawsuit to position his fillipant mouth

200 Likes 11 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Ehiscotch(m): 9:40am On Jul 15, 2017
SmartChoices:

Is your medulla oblongata functioning well? GEJ did not order price reduction at all. Albeit for political reasons. Fashola needs a serious lawsuit to position his fillipant mouth
LOL. I finally read the full article. I like how he came out to explain in detailed accounts the events that took place before the decision.

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Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Keballl: 9:40am On Jul 15, 2017
Ehiscotch:
But you made a very wrong and costly call.

You lack comprehension skills.

75 Likes 3 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Nobody: 9:41am On Jul 15, 2017
Ehiscotch:

LOL. I finally read the full article. I like how he came out to explain in detailed accounts the events that took place before the decision.
You should wonder how fashola qualified as a lawyer.
In the last 24 hours I have met two idiotic lawyers...

138 Likes 6 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Ehiscotch(m): 9:43am On Jul 15, 2017
Keballl:


You lack comprehension skills.
I admit reading a bit part of the article before commenting. But I still maintain my stand on the fact about Fashola being right about the decision being a poor one.

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Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by overall90: 9:46am On Jul 15, 2017
See the way the guy analysed everything.
One thing GEJ had that worked for Nigerians is that he had smart and highly technical people in his govt.
Look at what we have now, non of them can give a convincing answer to any issue presented, it is usually lies, conjectures and half truths.

243 Likes 17 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Ehiscotch(m): 9:47am On Jul 15, 2017
Keballl:


You lack comprehension skills.
I admit reading a bit part of the article before commenting. But I still maintain my stand on the fact about Fashola being right about the decision being a poor one. Even Sam Amadi is also admitting a bit of guilt:
" I am prepared to take slacks for any
intended or unintended consequences of that
decision as the Chairman and Chief Executive of
NERC. I still strongly believe that my reading of
effective regulation confirms that it was a good
decision to internalise efficiency in the distribution
segment of the electricity industry.”

4 Likes

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by jieta: 9:47am On Jul 15, 2017
h
Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Ehiscotch(m): 9:49am On Jul 15, 2017
SmartChoices:

You should wonder how fashola qualified as a lawyer.
In the last 24 hours I have met two idiotic lawyers...
Fashola spoke like politician. LOL

1 Like

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by greenmonk: 10:00am On Jul 15, 2017
Ehiscotch:

I admit reading a bit part of the article before commenting. But I still maintain my stand on the fact about Fashola being right about the decision being a poor one. Even Sam Amadi is also admitting a bit of guilt:
" I am prepared to take slacks for any
intended or unintended consequences of that
decision as the Chairman and Chief Executive of
NERC. I still strongly believe that my reading of
effective regulation confirms that it was a good
decision to internalise efficiency in the distribution
segment of the electricity industry.”
What Amadi is saying is that you cant use high tarrif to cover poor services. It is only in nigeria that power trip by 12 midnight wont be restored until 8am. Who pays for the wasted energy?
I am a power generation and distribution person.

98 Likes 12 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Nobody: 10:48am On Jul 15, 2017
SmartChoices:

You should wonder how fashola qualified as a lawyer.
In the last 24 hours I have met two idiotic lawyers...
Fashola and who

9 Likes

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Nobody: 10:53am On Jul 15, 2017
Ehiscotch:
But you made a very wrong and costly call.
When you start defending this government, you start acting weird and see Everyone as an enemy.



Look at sarrki today, he is so confused that today he doesn't know if his loyalty lies with APC or Buhari or Tinubu undecided



This government is accelerating the production of Zombies with their Farcical lies that will make aliens to cringe how worthless humans became under a space of two years in Nigeria

101 Likes 8 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by IllegalMoney: 10:53am On Jul 15, 2017
grin

Fashola has lost it, he should resign and go enjoy his loot

30 Likes

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by paBuhari(m): 10:59am On Jul 15, 2017
Years of eating ewedu hydraulics has damaged fashola's brain. No difference between buhari and fashola. Honestly the cabinet of this govt is a match made in heaven. Brainless people working together to inflict more hardship on Nigerians. What a change grin grin

58 Likes 3 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by paBuhari(m): 11:04am On Jul 15, 2017
overall90:
See the way the guy analysed everything.
One thing GEJ had that worked for Nigerians is that he had smart and highly technical people in his govt.
Look at what we have now, non of them can give a convincing answer to any issue presented, it is usually lies, conjectures and half truths.
Gej's govt is a govt of world class people, compared to this APC govt of liars.
Only in Nigeria you will see a president appointing qouta system lawyer to head power/works sector combine! Buhari's govt smacks of incompetence at every turn!

89 Likes 8 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Ehiscotch(m): 11:09am On Jul 15, 2017
QueenOfNepal:
When you start defending this government, you start acting weird and see Everyone as an enemy.



Look at sarrki today, he is so confused that today he doesn't know if his loyalty lies with APC or Buhari or Tinubu undecided



This government is accelerating the production of Zombies with their Farcical lies that will make aliens to cringe how worthless humans became under a space of two years in Nigeria
This is not Zombeism or whatever you call it.
The guy defended the decision well enough and I'm impressed.
I do not take sides with any government. I judge based on what I see; Sarrki is in a world of his own.

4 Likes 1 Share

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by toolovely(m): 11:20am On Jul 15, 2017
greenmonk:

What Amadi is saying is that you cant use high tarrif to cover poor services. It is only in nigeria that that power trip by 12 midnight wont be restored until 8am. Who pays for the wasted energy?
I am a power generation and distribution person.

some people's brain are so programmed that they don't have a right to reason on their own..... there's no explanation you will give to them from now till tomorrow they will understand.....

Fashola is only interested in tarrif hike when the discos are not interested in giving services that corresponds to the price they are asking for....

41 Likes 1 Share

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by signz: 1:16pm On Jul 15, 2017
greenmonk:

What Amadi is saying is that you cant use high tarrif to cover poor services. It is only in nigeria that that power trip by 12 midnight wont be restored until 8am. Who pays for the wasted energy?
I am a power generation and distribution person.

Ladies and Gentlemen of Nairaland, This is the summary of the reason behind Sam Amadi's decision to reduce tariffs.

Thank You.

58 Likes 2 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by signz: 1:17pm On Jul 15, 2017
paBuhari:
Gej's govt is a govt of world class people, compared to this APC govt of liars.
Only in Nigeria you will see a president appointing qouta system lawyer to head power/works sector combine! Buhari's govt smacks of [/b]incompetence[b] at every turn!

And corruption

16 Likes

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by SalamRushdie: 1:21pm On Jul 15, 2017
Ehiscotch:
But you made a very wrong and costly call.

Did you read the article and do you know most of the components of the cost were kickbacks to various power groups and that's what Fashola is currently interested in and not improved electricity

8 Likes

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Nobody: 1:22pm On Jul 15, 2017
Fashola ti la na. Ko lo ma sha se.. Ti Facebook ti wa, ko lo ma sha se
Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Nobody: 1:24pm On Jul 15, 2017
I wonder how Fashola qualified as a lawyer, he has been disgracing himself a lot thesedays.. Anyway in 2015 he said those that play the tactics he's playing now are dirty pigs that only wanted to play dirty. Fashola is now a dirty pig...Jonathan is too clean for him to toy with and won't stoop into his dirty mud... Ye ye Alascura...

50 Likes 3 Shares

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by SalamRushdie: 1:26pm On Jul 15, 2017
greenmonk:

What Amadi is saying is that you cant use high tarrif to cover poor services. It is only in nigeria that that power trip by 12 midnight wont be restored until 8am. Who pays for the wasted energy?
I am a power generation and distribution person.

Exactly

Fashola keeps digging himself deeper into trench of gross incompetence, this is a man who couldn't complete a mere 35kms of LEKKI EPE Express road for 8 years even though he had a budget and was heavily tolling the road when only 5 percent of the work had been done...Make no mistake Fashola is a masses hater whose Forte is arranging and legalising organised crime using that authority of govt office , Fashola keeps setting up white elephant Ponzi projects and policies whose aim is to rip off the masses without giving them any thing in return , from Lekki EPE road to the Lagos Island PPI to the Illubirin housing project to the Ikoyi link bridge and now his newest hiest which is selling exorbitant darkness to Nigerians in cahoots with his cronies at helms of the criminal DISCOS . Please someone help me ask Fashola what is a KW of darkness , what is the purpose of selling darkness to us, how do we harness the darkness his cronies are selling and how did they arrive at the price of over 30 naira for a kilowatt of darkness, WTF is even a Kilowatt of darkness sef..Fashola please resign

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Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by aggen: 1:27pm On Jul 15, 2017
Dont mind them.

Just because for over two years now, they have not had ANYTHING to show for governance they have chosen to intensify the blame game which is very diversionary from present realities as well as their absolute failure.

I blame the people that foisted them on Nigeria.

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Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by victoriagarry(f): 1:29pm On Jul 15, 2017
Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by Specialist900(m): 1:29pm On Jul 15, 2017
They should keep blaming GEJ

15 Likes

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by FitnessDoctor: 1:29pm On Jul 15, 2017
Nigerian politicians are now celebrities who now engage in social media war and we the citizens are their fans.
.
I think he should focus on the present than trying to tarnish PDP's image by blaming Goodluck Jonathan
.
I remain your favorite health blogger Paul Samuel FitnessDoctor

7 Likes

Re: Jonathan Didn’t Order Electricity Tariff Reversal, Ex-nerc Chair Replies Fashola by paradigmshift(m): 1:29pm On Jul 15, 2017
fashola minister of darkness.
hide your head in shame

22 Likes

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