Electricity Firms Push For 100% Tariff Hike Again!!! by Islie: 7:35am On Jul 12, 2016 |
Power firms are pushing for a fresh 100 percent increase in electricity tariff, the second in six months, Daily Trust investigations have shown. The electricity distribution companies (DisCos) raised tariff by over 45 percent in February.
The DisCos had written to the regulatory authority, the Nigerian Electricity Regulatory Commission (NERC) demanding hike in tariff from the current average of N24 per kilowatt (for residential consumers) to N50 per kilowatt.
However, the Director General of the Manufacturers Association of Nigeria (MAN), Mr Remi Ogunmefun, told Daily Trust in Lagos that his association had opposed that move in writing to the NERC. The NERC announced the 45 percent hike in electricity tariff with effect from February 1, 2016, and said theincrease would enhance service delivery and customer satisfaction.
But since the increment, the electricity supply across the country has dropped affecting both household and commercial activities.
A source at the NERC confirmed to Daily Trust that the DisCos had written a letter seeking for the increase. “When MAN got wind of the power firms’ letter seeking for the 100 percent hike, they equally wrote a letter countering the DisCos claims,” the source said.
The spokesperson of NERC, Mike Faloseyi, when contacted on Sunday, said he was not aware of the proposed hike but promised to get back to our reporter. When Daily Trust contacted him yesterday, he said he was in a meeting but would consult with the commission chairman and get back to us. But he never did.
Power firms justify tariff
Daily Trust observed that in an attempt to justify its proposed electricity hike, the umbrella body for DisCos, the Association of Nigerian Electricity Distributors (ANED) has been running advertisements in about 10 national dailies in the last five weeks highlighting “basic electricity facts the public must know.”
The publicity messages, ANED said, were meant to clarify the position of 11 power distribution companies in the power sector value chain. Some of the paid publications carried messages such as: “Electricity is a commodity with a price that must be paid.”
“The average residential tariff of N24.12/kWh is still significantly cheaper than self-generated power at a cost estimated to be in excess of N50/kWh,” among others.
ANED on its website also said the DisCos had a five-year performance commitment to reduce power interruption, extend the distribution network, increase metering and improve the quality of customer service. One other message by the association reads: “DisCo operators only collect 24 percent of the tariff revenues. The balance goes upstream to transmission, generation and other industry stakeholders (CBN, NERC, NBET, etc).”
The association said without a tariff that allowed the operators to recover their cost of operation, there would be no increased generation or improved service delivery.
On the recent vandalism, ANED in its most recent series of paid publicity said electricity customers should blame vandals and not the DisCos as “we cannot give what we do not have.”
MAN rejects fresh tariff
Manufacturers Association of Nigeria (MAN) confirmed to Daily Trust that it recently wrote the NERC to express displeasure over moves to increase electricity tariff in the country.
Mr. Ogunmefun said the letter to NERC was a continuation of MAN’s opposition to intense lobbying by electricity distribution companies to increase electricity tariff without recourse to procedures and rules. He wondered why the DisCos were so anxious to introduce a new tariff regime when the ongoing tariff would only lapse in 2017.
“We have an agreement with the electricity distribution companies on MYTO 2 which states that the current electricity tariff would terminate in 2017. “We have consistently challenged the moves by the distribution companies to hike tariff for manufacturers outside the MYTO 2,” he said.
Ogunmefun said, “We filed a suit at the Federal High Court Lagos which has since given injunction stopping the electricity distribution companies from going ahead to tamper with the current electricity tariff.
“We will not relent in our opposition to the moves by power companies to increase electricity tariff outside the MYTO 2.” He said the manufacturing sector alone contributed over 80 percent of the revenue of the power distribution companies as such there was no justification to stultify the sector with arbitrary tariff regime.
He said Nigeria was battling with infrastructure gaps and frustrating manufacturers with high electricity tariff would go a long way in killing ease of doing business in the country.
“To imagine an increase in electricity tariff with the already frustrating state of infrastructure in the country is a mortal blow on the manufacturing sector,” he said.
Civil society kicks
The Nigerian Electricity Consumers Advocacy Network (NECAN), a consumer group earlier initiated by NERC, has frowned on the planned increase while accusing the commission of complicity.
NECAN President, Tomi Akingbogun, told our reporter yesterday they confirmed the proposed increment with MAN and that they would take up the issue with the minister of power.
“We totally condemn it because it is dangerous for our economy at a point when the DisCos are not supplying any electricity,” he said. He said any fresh increase “is quite dangerous for this economy because it is like inciting the people against the government; it means the people are being pushed to the wall.
“The economy is almost nearing a recession. The increment if done will be 200 percent in two years. We believe the minister will not approve such and for those who are having such thoughts including the owners of the DisCos, are they really in Nigeria?” Akingbogun said “Even Ghana just complained of poor power supply because of the vandalism here in Nigeria. We are not having enough power now. This is the fourth time they will be asking for tariff rise. When they first asked for 100 percent, NERC gave them 50 percent and it happened the second time.
“NERC should have thrown their request out but it is better we don’t wait for NERC because they may not say anything to the advantage of the public. In the past, they aligned with the GenCos, that is why we, as the voice of the public, said this must not be done,” he said.
Consumers’ reaction
Individual electricity consumers across Abuja and environs also expressed their dismay over the new proposal. Mr Nwigwe Obi who runs a welding venture in Nyanya, Abuja said it would not work as Nigerians would resist such moves at all cost.
“We have not even gotten over that of February 1, 2016 when it rose to over 45%. This time, government should know that everybody will rise up in protest because it is too much,” he said.
Malam Haliru Musa, a cold room operator in Mararaba, Nasarawa state said the DisCos should not think that way because the power supply situation has been bad in the past months.
“The DisCos won’t think of that because vandalism has crippled power and they have not supplied meters to customers. Nobody will pay if they attempt to even increase a little,” he said.
Mr Odoh Vincent, a resident of Lugbe, Abuja said “with the last increase, my estimated bill rose from an average N3,000 monthly to about N7,000. The DisCos promised to provide meters after the February increase but we have not seen any yet.”
DisCos response
When contacted yesterday, the spokesperson of ANED, Barrister Sunday Oduntan said in a text message that it was not true. “No. That is not true. Call me later,” Oduntan said. He didn’t answer subsequent calls or respond to text messages sent to his mobile phone. http://www.dailytrust.com.ng/news/general/electricity-firms-push-for-100-tariff-hike/154933.html 1 Like |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by satelliteDISH(m): 7:36am On Jul 12, 2016 |
lalasticlala, come see wetin minister of darkness wan do ooh.
After them don remove subsidy from kerosine.
After them don ban "I better pass my neighbour" importation.
Now them want make we help them pay the money wey Fashola take campaign for bubu election.
We no go gree, we no go gree. 80 Likes 10 Shares |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by deeplow: 7:37am On Jul 12, 2016 |
Thunder fire them. 7 Likes |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by nnachukz(m): 7:38am On Jul 12, 2016 |
Everybody just see this useless and unserious administration as the right time to milk us dry and kill off any remaining living cell(hope) in us. I blame that useless SAN and that lying Prof that deceived Nigerians with their rocket science theory. It is getting to the time I will use my hand to remove and coil those cables that have become ordinary lines from my house, then wait for any lunatic and thief that will come to my place with a bill. That day he will vomit the ones he had been stealing from me in name of paying for what I never used. 76 Likes 6 Shares |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by ConqueredWest: 7:41am On Jul 12, 2016 |
Omenka Beremx Obiageli modath aresa ngenekwenu etc were at thou AFONJAs come and defend your Bubu. God bless Afenifere and OPC ![grin](https://www.nairaland.com/faces/grin.png) They saw and said the truth ![cool](https://www.nairaland.com/faces/cool.png) 61 Likes 3 Shares |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by disloman(m): 7:42am On Jul 12, 2016 |
Dem never born them well. 4 Likes |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by otitokoroleti: 7:44am On Jul 12, 2016 |
ConqueredWest: Omenka Beremx Obiageli modath aresa ngenekwenu etc were at thou
AFONJAs come and defend your Bubu.
God bless Afenifere and OPC ![grin](https://www.nairaland.com/faces/grin.png)
They saw and said the truth ![cool](https://www.nairaland.com/faces/cool.png) una dey call APC e-goat? 57 Likes 3 Shares |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by Beremx(f): 7:45am On Jul 12, 2016 |
13 Likes 3 Shares |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by ConqueredWest: 7:45am On Jul 12, 2016 |
Beremx saw you viewing. Is this the change you voted for. Increase in tarrif decrease in light ![cheesy](https://www.nairaland.com/faces/cheesy.png) Afenifere and OPC wins ![grin](https://www.nairaland.com/faces/grin.png) 25 Likes 2 Shares |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by TANTUMERGO007(m): 7:46am On Jul 12, 2016 |
ConqueredWest: Omenka Beremx Obiageli modath aresa ngenekwenu etc were at thou
AFONJAs come and defend your Bubu.
God bless Afenifere and OPC ![grin](https://www.nairaland.com/faces/grin.png)
They saw and said the truth ![cool](https://www.nairaland.com/faces/cool.png) you left uncle Gbawe out of the list 27 Likes |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by otitokoroleti: 7:46am On Jul 12, 2016 |
Beremx: I care less if the electricity tarrif is increased to 400percent. Where i live now,I pay only 200naira monthly when the bill is shared. ![grin](https://www.nairaland.com/faces/grin.png) i c 9 Likes 1 Share |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by Histrings08(m): 7:46am On Jul 12, 2016 |
Shey DEm wan kill us ni 1 Like |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by ConqueredWest: 7:46am On Jul 12, 2016 |
Beremx: I care less if the electricity tarrif is increased to 400percent. Where i live now,I pay only 200naira monthly when the bill is shared. ![grin](https://www.nairaland.com/faces/grin.png) That is only possible in a " face me I face you apartment " ![grin](https://www.nairaland.com/faces/grin.png) 106 Likes 8 Shares |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by dunkem21(m): 7:47am On Jul 12, 2016 |
ConqueredWest:
That is only possible in a " face I face you apartment " ![grin](https://www.nairaland.com/faces/grin.png) ![cheesy](https://www.nairaland.com/faces/cheesy.png) 38 Likes 1 Share |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by ConqueredWest: 7:48am On Jul 12, 2016 |
TANTUMERGO007:
you left uncle Gbawe out of the list Gbawe has gone back to his Oshogbo village due to Buhari's hardship. ![grin](https://www.nairaland.com/faces/grin.png) 37 Likes 1 Share |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by RZArecta(m): 7:49am On Jul 12, 2016 |
I just dey laugh this govt sha 1 Like |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by ConqueredWest: 7:50am On Jul 12, 2016 |
dunkem21:
![cheesy](https://www.nairaland.com/faces/cheesy.png) She just told us her social status. ![grin](https://www.nairaland.com/faces/grin.png) 29 Likes 1 Share |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by TANTUMERGO007(m): 7:51am On Jul 12, 2016 |
ConqueredWest:
Gbawe has gone back to his Oshogbo village due to Buhari's hardship. ![grin](https://www.nairaland.com/faces/grin.png) haaahaaaaaaaahahahaaaahaha, baba claims he is in london and his supporters head go they big. he would go to the airport to take pictures claiming he has arrived. baba is in ibadan suffering and smiling 31 Likes 1 Share |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by Beremx(f): 7:51am On Jul 12, 2016 |
ConqueredWest:
That is only possible in a " face I face you apartment " ![grin](https://www.nairaland.com/faces/grin.png) not at all. it's a very nice and big compound with eight flats. I just moved in there anyway. Can you imagine where i lived before, i pay 8k monthly for electricity bills? Can you see the disparity in the bills? That shows the discos are thieves. |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by TANTUMERGO007(m): 7:52am On Jul 12, 2016 |
Beremx: I care less if the electricity tarrif is increased to 400percent. Where i live now,I pay only 200naira monthly when the bill is shared. ![grin](https://www.nairaland.com/faces/grin.png) IYA LAND SELLER! HOW IS THE BUSINESS NA? 12 Likes 1 Share |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by nnachukz(m): 7:54am On Jul 12, 2016 |
Beremx: I care less if the electricity tarrif is increased to 400percent. Where i live now,I pay only 200naira monthly when the bill is shared. ![grin](https://www.nairaland.com/faces/grin.png) My people, can you now see why most zombies support bubu blindly? N200 only. 39 Likes |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by ConqueredWest: 7:55am On Jul 12, 2016 |
nnachukz: My people, can you now see why most zombies support bubu blindly? N200 only. Face Me I Face You Apartment Trust me that is what they pay ![grin](https://www.nairaland.com/faces/grin.png) 38 Likes |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by dunkem21(m): 7:58am On Jul 12, 2016 |
Beremx: not at all. it's a very nice and big compound with eight flats. I just moved in there anyway. Can you imagine where i lived before, i pay 8k monthly for electricity bills? Can you see the disparity in the bills? That shows the discos are thieves. I think your neighbours are thieves.. How can you pay N200 for a whole month for a flat? .. ![angry](https://www.nairaland.com/faces/angry.png) This is economic sabotage, fantastic corruption and Buhari/Fashola should activate the EFCC. 46 Likes 4 Shares |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by idupaul: 8:00am On Jul 12, 2016 |
I don't belive this story because the current Tarrif is really high from most Nigerians .my monthly bill hassle gone up from 10k to 20 know already .I will use this opportunity to remind those of us that voted this incompetent and insensitive man called Buhari to prepare to start calling for his resignation soon ooo 16 Likes 2 Shares |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by ConqueredWest: 8:00am On Jul 12, 2016 |
dunkem21:
I think your neighbours are thieves.. How can you pay N200 for a whole month for a flat? .. ![angry](https://www.nairaland.com/faces/angry.png)
This is economic sabotage, fantastic corruption and Buhari/Fashola should activate the EFCC. Flat get grade Even Face Me I Face You na flat ![grin](https://www.nairaland.com/faces/grin.png) 37 Likes 2 Shares |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by TI1919(m): 8:01am On Jul 12, 2016 |
... 2 Likes |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by ConqueredWest: 8:02am On Jul 12, 2016 |
idupaul: I don't belive this story because the current Tarrif is really high from most Nigerians .my monthly bill hassle gone up from 10k to 20 know already .I will use this opportunity to remind those of us that voted this incompetent and insensitive man called Buhari to prepare to start calling for his resignation soon ooo Good Morning Afonja. Afenifere awaits you in their camp with wailers ![grin](https://www.nairaland.com/faces/grin.png) 12 Likes |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by idupaul: 8:02am On Jul 12, 2016 |
Beremx: not at all. it's a very nice and big compound with eight flats. I just moved in there anyway. Can you imagine where i lived before, i pay 8k monthly for electricity bills? Can you see the disparity in the bills? That shows the discos are thieves. You should be arrested and prosecuted immediately. .people like U are the one making the rest of us to pay heavy to use epileptic electricity 34 Likes 1 Share |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by koboko69: 8:04am On Jul 12, 2016 |
Some people a plain stupid. What as Fashola or Buhari got to do with this. Jonathan privatised PHCN. And now we are ripping the "fruits" of the fraudulent privatisation. 9 Likes |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by sinkhole: 8:04am On Jul 12, 2016 |
God, ordinary people in this country need to do something quick o, or else we will start dying by the day on the street! In my place, which is being supplied by AEDC, whenever we see electricity it will be between 12midnight and 6am (who actually uses electricity at this time?) and when the bill comes it is between 7500naira and 5000naira per month! During May and June when they did not give up to a day per month of electricty, they gave us around 5500naira bill per month! And now they want increament in the tariff. What actually are these people (DISCOs) supplying that we are paying for? 5 Likes |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by Frankiss44(m): 8:09am On Jul 12, 2016 |
Next time when my people hear change, dem go ask whether na positive abi negative.... At this rate by 2019 more than 60 percent of Nigerians will not be able to eat 3 square meals 9 Likes |
Re: Electricity Firms Push For 100% Tariff Hike Again!!! by koboko69: 8:09am On Jul 12, 2016 |
sinkhole: God, ordinary people in this country need to do something quick o, or else we will start dying by the day on the street! In my place, which is being supplied by AEDC, whenever we see electricity it will be between 12midnight and 6am (who actually uses electricity at this time?) and when the bill comes it is between 7500naira and 5000naira per month! During May and June when they did not give up to a day per month of electricty, they gave us around 5500naira bill per month! And now they want increament in the tariff. What actually are these people (DISCOs) supplying that we are paying for? We are ripping the fruits of "fraudulent privatisation" 4 Likes |