The Nation Newspaper

Tag: tariff

  • Fashola and electricity tariff

    SIR: As  a Nigerian very  interested in seeing the nation  get  out  of the doldrums of  constant  power failure  and its  dire  and  negative  consequences on our economic   development and   the  welfare  of  Nigerians, I  had heard  many  things  on the issue of privatization and the emergence   of  the distribution  companies (Discos)  saddled  with delivery   of electricity after  the reform of   power  sector. The latest was when the minister in charge of power,  BabatundeRajiFashola SAN told the House of  Representatives Committee that had  asked him  to come and explain  the nation-wide blackout  that the government  had   legally sold the PHCN  and that  the  new  tariffs announced early  this  year  would  eventually  benefit  the Nigerian consumer  of  electricity.   Of particular interest to me was his blunt rebuttal of the mistaken notion of the lawmakers that the privatization involving the Discos was less than legal.

    Again, the impression  one had  on the new  tariffs  as peddled  by  the trade unions  was that  the Discos were guilty  sharks   fishing  in Nigerian power  waters illegally  and milking Nigerians dry  with  high  tariffs  without  supplying  the expected  electricity. Now,  the minister  of  power  has come out  to defend  the new electricity  tariffs  as  cost -reflective  and structured  to create  liquidity  for the industry and make the discos viable  as a going  concerns,  to enable them recoup  their  huge investment at  a given and monitored  time,  while  guaranteeing customer  satisfaction. That  to me is quite  cheering  news  although  there  are  still  some  obstacles  in the way  in  spite  of  the bold and patriotic  posture  of  the minister supporting  both  the legality  of the discos, power  privatization, as  well  as the legality  of the new tariffs  and their technical  cost  reflective  nature.

    The  first  obstacle  which the  minister  should confront  is  the  suspension  by  the  Senate   of the new tariffs  approved for  the  Discos  by the  Nigerian Electricity  Regulatory  Commission – NERC –the  regulator  of  the electricity  industry  in Nigeria. Now that the  minister  has  stated  that  the tariffs  are correct  and legal,  he should  impress that  on  the  Senate  so  that  that lawmaking  body sticks to  its duties  of  making laws  for  Nigerian  people  so  that  electricity  can  be regulated by  the institution empowered  by  law  to  regulate  it, which  is, NERC.

    In  this, the  minister  should  have  the  support  of  all  right-thinking  Nigerians who  knew what  led  to the wrong  decision of the Senate  on  the new  tariffs.  Now  that  the minister, a  Senior Advocate of Nigeria, has  thrown  the weight  of the law  as well  as his office  behind  the legitimacy  of  the Discos as well  as  the legality  and desirability of the new  tariffs,  the Senate should  retrace  its steps and rescind  its illegal stoppage  of  the new  tariffs.  This is even more so as   NERC has already taken the  Senate   to court on  the  matter.  That  is the path  of  honour  and the  only  way  to  make  electricity  work  in Nigeria  as the power  minister  has already  demonstrated   both   in  word   and  deed.

     

    • Tunji Aderibigbe,

    Ilorin, Kwara State.

  • Has EEDC increased their tariff?

    SIR: I was surprised when I received my March electricity bill from EEDC (Enugu Electricity Distribution Company). The highest I had paid per month previously was N6,500 but I was surprised that in March it went up to N13,000 which translate to 100 per cent  increase. I began to wonder whether the electricity distribution companies were given approval to increase electricity tariff to 100 per cent. I think if I am not mistaken, they were only given approval for 45 per cent increase on tariff. So, how come I was charged 100 per cent increase for the month of March? I checked around neighbours in World Bank Housing Estate, Aba, Abia State where I lived, I discovered that  this 100 per cent increase affected most of my neighbours.

    The question now is – has the increase in tariff been approved? After much debate, the Senate came to the conclusion that  judging from the hardship many Nigerians are going through, it will be suicidal to increase the tariff and so stopped electricity distribution companies from going ahead to charge the increase. The labour unions also concluded that before the electricity distribution companies should talk about increase, that  there should be visible improvement in the services. How come they went ahead to increase their tariff and who approved it?

    We users of electricity in Aba have been taken for granted. We call on the regulatory body to check and stop the exploitation by EEDC on electricity users in Aba. We also call on the ministry of power to let GeoMetric to start operation so that we users in Aba can choose which company to patronize and stop this exploitation by EEDC.

     

    • Nnamdi Ikechukwu, Aba.

  • DisCos: Senate tariff resolution ‘ll fail power sector

    The Association of Nigerian Electricity Distributors (ANED) yesterday said the Senate resolution that stopped the implementation of the 2015 Multi -Year Tariff Order (MYTO) will have adverse effects on the power sector.

    According to its Executive Director, Advocacy and Research, Sunday Oduntan,  a market priced tariff is a fundamental requirement under the agreements signed between Distribution Company (DisCo) operators in the Nigerian Electricity Supply Industry (NESI) and the Bureau for Public Enterprises (BPE), raising the concern for sanctity of contract.

    The association in a statement, lamented that the decision will culminate in the  absence of a market priced tariff that  creates the possibility of failure by the operators.

    He said such a failure will be at a price that the government can ill-afford in these times of dire economic challenges.

    The group maintained that a market priced tariff is critical to address decades of under-investment such as the five million metering gap in the sector.

    Oduntan insisted that globally, electricity reforms have always been tied to increased investment, resulting in improved production efficiency. Such investment is predicated on access to capital which will be jeopardised in the absence of a market priced tariff, he added.

    He said the absence of a market priced tariff will endanger the viability of the entire value-chain of distributors, generators, transmission and gas suppliers, resulting in the failure of the sector.

    He said: “As the upstream operators will not receive required payment (DisCos only receive 25 per cent of the revenues associated with the tariff.

    “Failure of the sector will result in, among other things, loss of employment and livelihood for approximately 50,000 Nigerians, indirect job losses from factory and other business closures, possibly in the millions; and a related outcome of discouraging further investments in the development of gas reserves and production for local consumption; and

    “Expected performance improvement, with appropriate investment, on the other hand, will lead to a reduction of tariffs in subsequent years.  This is empirically supported.

    “Fellow Nigerians, suspending the implementation of the tariff will leave us in continued darkness, with diminished and no future prospects of growth of our economy.”

  • Judge warns against flouting orders on tariff

    Judge warns against flouting orders on tariff

    Justice Mohammed Idris of the Federal High Court in Lagos yesterday warned the Federal Government and Distribution Companies (DISCOs) against flouting court orders on tarriff.

    He said the government must not show disdain for the court in a democracy.

    Justice Idris said: “The point must be made that obedience to the rule of law by citizens but more particularly those who take the oath of office to protect and preserve the Constitution is decideratum to good governance and respect for rule of law.

    ‘’In a constitutional democratic society as ours, this is meant to be the norm.

    “It is an act of apostacy for government to ignore the law and the rules meant to regulate matters.

    “I must say it loud and clear that the government shall be a government of laws and not of men.”

    Protests by labour unions have trailed the new tarriff approved by the Nigeria Electricity Regulatory Commission (NERC).

    Activist-lawyer Toluwani Adebiyi last year filed a suit seeking a perpetual injunction restraining NERC from implementing any upward review of tariff without significant improvement in power supply for at least18 hours a day.

    Justice Idris made an order directing parties to maintain the status quo.

    But, while the suit was pending, NERC announced the tarriff hike.

    Yesterday, Adebiyi informed the court that he initiated contempt proceedings against NERC chairman and chiefs of the DISCOs for disobeying court orders.

    The lawyer prayed the court to commit the alleged contemnors to prison.

    But NERC’s lawyer Chief Anthony Idigbe (SAN) said he filed an appeal against the order by Justice Idris.

    He said he had a pending application for a stay of proceedings pending the determination of the appeal.

    Adebiyi said the contempt charge should be heard first since NERC undermined the court’s authority.

    But Idigbe said the application for a stay of proceedings should take precedence since an appeal had been lodged.

    Justice Idris said after examining the records, there were a number of pending applications to be dispensed with.

    Among them is the Form 49 filed by the plaintiff and a motion for leave to serve the purported contemnors through their counsel.

    He said there was also an application by the second to 12th defendants to set aside the Form 49 as well as an application by NERC challenging the motion on notice for committal.

    Also pending is an application to stay proceedings pending the hearing and determination of the appeal to the Court of Appeal against the orders of July 23, 2015.

    Justice Idris said: “I understand it to be the law that contempt proceedings are criminal in nature and should, therefore, ordinarily in the context of our jurisprudence be first dealt with either by the court trying the case when the alleged contempt took place or by another court.

    “The purpose of taking contempt proceedings first is to demonstrate to the public that the court, being the creation of the Constitution to decide cases between all manner of litigants vide Section 6 of the Constitution, should protect its dignity and will neither allow a citizen nor any other arm of government to brazenly do an act that will diminish the powers duly invested by the Constitution and the common law in the administration of justice.

    “On the other hand, the basis upon which the contempt application is premised, which is the order that parties maintain the status quo ante-bellum, is on appeal, and there is a motion for a stay of proceedings in this suit pending appeal.

    “It is in the interest of justice, therefore, that this application to stay proceedings be heard and determined.

    “Until then, no further proceedings should go on. I will, therefore, take arguments on the application to stay proceedings in this suit.”

    Adebiyi said he was served with the application for a stay of proceedings last week and needed time to respond.

    He earlier argued that NERC and the DISCOs could not be heard until they “purge themselfs of acts of contempt of court.”

    Besides, he said the stay of proceedings’ application was a ploy to delay the case and enable NERC implement the new tariff despite the court order.

    Adebiyi prayed for an order of court mandating NERC to generate more power to meet the country’s power  needs, and to develop a multiple long-term financing approach, sourced from the banks, capital market, insurance and other sectors to finance the sector.

    The lawyer also asked the court to mandate NERC to make available, within two years, prepaid meters as a way of stopping indiscriminate estimated bills.

    In a supporting affidavit, the plaintiff said despite NERC’s mission of “keeping the light on and to meet the needs of Nigeria for safe, adequate, reliable and affordable electricity,” most communities do not get more than 30 minutes of electricity supply daily.

    Justice Idris adjourned till Friday to hear the application for a stay of proceedings.

     

  • Battle on tariff hike not over, says Falana

    Battle on tariff hike not over, says Falana

    Human Rights lawyer Femi Falana has warned electricity distribution companies to expect more opposition from rights groups, if they implement a new tariff approved by the Nigerian Electricity Regulatory Commission (NERC).

    Falana spoke at the 2016 National Conference Meeting of the Committee for the Defence of Human Rights (CDHR) in Lagos on Saturday, with the theme: ‘Challenges of Protecting the Human Rights of Nigerians.”

    Other speakers at the event included CDHR President Malachy Ugwumadu, widow of the late rights activist Dr. Beko Ransome-Kuti, Bose, and wife of CDHR founder, the late Alao Aka-Bashorun, Kudirat.

    Falana said: “Last week, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) went to the streets to send a note of warning that there is no way you can justify increase in tariff by 45 per cent; the battle is not over yet.”

    “The NLC president informed me that what happened during the week was just a warning and until the government reverses that decision to increase tariff, in the midst of darkness, the struggle will continue.”

    Earlier, CDHR President Malachy Ugwumadu said the organisation would aid the government’s anti-corruption fight by publishing a document detailing the history, extent and perpetrators of corruption.

    Ugwumadu said: “We intend to capture the looting activities in the country, liaise with law enforcement agencies and document names of those alleged to have milked us dry.

    “The purpose for this is to ascertain the actual amount, track the much to be recovered and quantify in developmental terms, what they would have translated to.”

    The conference also marked the 10th Beko memorial as well as that of Aka-Bashorun.

    Mrs. Ransome-Kuti said her late husband’s life was full of purpose and protection of people’s rights.

    She urged Nigerians to back President Muhammadu Buhari’s efforts to sanitise the country.

    “We now have a President that represents integrity, transparency and due process,” she said.

  • Consumers seek waivers as new tariff takes off

    Electricity consumers are asking for waivers from power distribution companies (DisCos), following the decision of the Federal Government to implement the new tariff, The Nation has learnt.

    Consumers, it was gathered, have been approaching the DisCos to cancel  some of their  debts in order to ease the burdens the new tariff is bringing upon them and charge  them less,  especially those  of them  that do not have meters, among others.

    Investigations showed that consumers, who owe fixed charges, were also meeting DisCos to cancel their debts. A veterinary doctor, Akininyi Emmanuel said consumers were asking for waivers because they know that they would not be able to pay the new tariff.

    He said consumers under the Ibadan Electricity Distribution Company (EBEDC) have been trying to get waivers since the new tariff took off about two weeks ago. Akininyi, who lives in Ibadan, Oyo State capital, said many have sought ways of negotiating with the company, following the introduction of the new tariff.

    When The Nation visited some of the Business Units owned by the Ikeja Electric and Eko Electricity Distribution Companies (EKEDC), it found out that consumers have been asking for concessions since February 1, when the new tariff took off concurrently with the removal of fixed charges.

    A staff of Ikeja Electric, who pleaded anonymity, said many customers, who came to recharge their meters have been asking for cancellation of the fixed charges they owed.

  • Tariff hike: Discos seek understanding

    •Workers protest today 

    Association of Nigeria Electricity Distributors (ANED) has sought the understanding of the organised labour unions on the increase in  tariff, promising uninterrupted electricity supply.

    The appeal came in the wake of the nationwide protest today by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

    The protest followed the 45 per cent increase in tariff by the Nigeria Electricity Regulatory Commission (NERC).

    A statement signed by the Executive Director, Research and Advocacy of ANED, Sunday Oduntan,  said: “…We reassure electricity customers nationwide that the continued increase in generation in the last few months will continue to translate into more electricity supplied to their homes and businesses”.

    It added that Discos would continue to distribute power transmitted to them.

    They assured that they “…are sensitive to customer anxiety at the recent increase in tariff.  As such, we assure our customers that the increase is no more than that which is necessary for critical improvement of an electricity infrastructure that has suffered decades of neglect”.

    According to the statement, the increase will help to mitigate the negative cash flow and revenue shortfalls bedevilling the sector since the handover of the assets to private operators, hindering the ability of the generators to increase power supply, due to their inability to pay gas suppliers; constraining the wheeling capacity of the power.

    “We are appealing to organised labour and fellow compatriots to please join the Federal Government and the power sector operators, as we continue to work to improve the supply of electricity,” added the statement.

    The statement noted: “…we must point out that even with the increase in tariff, the cost of self-generated power, estimated to be between N45 to N70 per Khw, is still significantly more than the cost of grid supplied power.  And this is without considering the additional benefits to our environment, of minimising the use of generators and a reduction in their related emission of pollutants.”

    But the NLC said the mass action, which is expected to take place in the 36 states and Abuja, will see its members and their civil society allies picketing electricity distribution companies.

    Also yesterday, the National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTWN) urged President Muhammadu Buhari to review the power sector reform of the previous government to increase public sector involvement.

    Its General Secretary, Comrade Issa Aremu, who made the call in a statement in Abuja, said the promise by the government to revive textile industries would not be possible without improved power supply.

    Aremu, who said the union supports the planned picketing by labour and their civil society allies, added that the government should listen to suggestions of power sector unions on the issue.

    In a statement, he said: “The textile union calls for improvement in power supply.  The point cannot be overstated. Between 30 per cent and 35 per cent of textile and garment manufacturing costs are energy-related expenses. Without electrification, there can be no industrialisation.”

    He hailed NLC leadership for its mass action and rejected the hike in tariff.

  • Tariff increase: FG moves to avert shutdown of DisCos, GenCos

    Tariff increase: FG moves to avert shutdown of DisCos, GenCos

    The Minister of Labour and Employment is to meet with organised labour led by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) next week in a bid to avert the impending shutdown of electricity generation and distribution companies as a result of the recent increase in electricity tariff.

    Organised labour and their civil society allies are scheduled to embark on a nationwide protest and picketing of electricity generation and distribution companies from Monday, February 8 after efforts to reverse the new tariff failed.

    It is however not clear whether the planned protest will still go ahead after the Minister said he has invited the leadership of labour and other stakeholders, including the Nigerian Electricity Regulatory Commission (NERC) to a meeting next week to discuss the issue.

    The NLC has already sent out invitations inviting workers and other Nigerians in the Federal Capital Territory to converge on the Labour House in the Central Business District for the protest march to the designated points in Abuja.

    However, the Minister of Labour and Employment, Senator Chris Ngige told the Senate Committee on Labour and Employment that he has invited the leadership of congress to a conciliatory meeting with Electricity Distribution Companies next week to resolve the matter.

    He told the committee while defending the Ministry’s 2016 budget that “we have gotten their letter and have invited them for discussions, including Electricity Distributions Companies and Nigerian Electricity Regulatory Commission”.

    Senator Ngige stated that the ministry is determined to tackle the challenges of unemployment, using well thought out programs such as the Graduate Teachers Conversion, Skills Acquisition Programs and  Conditional Cash Transfer to mention.

    He said: “The programs of the present administration of President Muhammadu Buhari are focused towards employment generation. To this end there is a change in our 2016 budget from what it used to be in the past.

    “This year, we want to tackle unemployment and we will tackle it from all facets using programs such as graduate conversion scheme and vocational skills acquisition programme among others, to ensure that our young ones are empowered for self-sustenance”.

    Chairman of the Senate Committee on Employment, Labour and Productivity, Sen. Suleiman Nazif assured that the committee would take a holistic look at the proposed budget mindful of the critical responsibilities of the ministry in the fight against unemployment.

    He said: “We will go back and study your budget proposal. You can be assured that Nigerians will be proud of the outcome. I want to state that with Ngige at the helm of affairs in the ministry, we are sure that there are better days ahead.

  • Ikeja Electric unveils new tariff

    Ikeja Electric has said the implementation of its new tariff structure, which started on February 1, will boost service delivery.

    Its Head of Commercial, Mrs. Folake Soetan, said the cost-reflective tariff would boost the capacity of distribution firms, strengthen the power value chain and improve the quality of service to customers across the nation.

    She said the tariff would further drive Ikeja Electric’s investments and plans to ensure sustained excellent service delivery to all customers within its network.

    “At Ikeja Electric, the new tariff represents another opportunity for us to demonstrate our commitment to transparent, equitable and reliable power distribution to our esteemed customers. We are passionate about service excellence and will continue to work closely with our customers to achieve our ultimate goal which is: let there be light for all Ikeja Electric customers,” she said.

    The new payment structure will be implemented across five major categories including residential, commercial, industrial, special and street lights. Soetan said the company would engage all classes of customers to explain the implication of the new tariff on billing going forward as well as reinforce how customers can take advantage of Ikeja Electric’s various payment channels for convenient, reliable and secure bill settlement.

    “Integrity, professionalism and transparency are some of the values that drive our operations at Ikeja Electric. We will embark on multi-stakeholder engagements that will address all enquiries regarding the new tariff to ensure full understanding by our customers. Our customers can rest assured that the process will be transparent,” she added.

    She noted that in addition to the engagements, Ikeja Electric would attend to customer queries on the new tariff via its contact centre helplines, walk-in customer care centers (IE Serve), dedicated email service, Facebook, Twitter and the company’s corporate website.

    She said: “Ikeja Electric is passionate about powering homes, communities, lives and businesses across its network. We are confident that the new tariff as well as our ongoing metering, customer enumeration and technical audit projects will enhance the quality of our service. We appeal for the support of our customers by way of prompt bill payment and exposure of energy thieves and vandals that attack our equipment and installations. This will make more power available to bonafide Ikeja Electric customers”

  • New electricity tariff: NLC, TUC to picket DISCOs nationwide

    New electricity tariff: NLC, TUC to picket DISCOs nationwide

    The extended labour unions, including the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) have set machinery in motion to picket the offices of the electricity distribution companies (DISCOs) nationwide, The Nation has learnt.

    Rising from a stakeholders’ meeting convened in Lagos at the weekend, NLC president Comrade Ayuba Wabba and his counterpart at TUC, Comrade Bobbi Kagama, and Messrs Adeola Samiel-Ilori, Coordinator, Electricity Consumer Protection Forum, Toluwani Yemi-Adebiyi, a human right activist and Chinedu Bosah, publicity secretary, CDWR, described as illegal, unfair and unjustifiable a further exploitation of the exploited Nigerians the intention to increase electricity tariff come February 1st, 2016.

    Justifying the need for the rejection of the new tariff they said due process was not followed in line with Section 76 of the Power Sector Reform Act, 2005.

    Besides, they said there has been no significant improvement in service delivery just as they accused the DISCOs of reneging on the memorandum of understanding in which the latter promised to provide meters to al electricity consumers but failed to do so.

    Subsequently, they hinted that the labour unions will as a matter of necessity mobilise all Nigerians to resist the new tariff by embarking on mass protest and picketing of all DISCOs’ offices nationwide.

    “We direct all consumers to reject any bill with the new tariff and so many other actions we may deem necessary.”

    It may be recalled that Yemi-Adebiyi who had taken the NERC to court got an order by the Federal High Court in Lagos to stop it from further increasing its tariff, said the injunction granted by Justice Ibrahim Idris against any increment was subsisting and had not been discharged.

    Justice Idris made the order on May 28 restraining NERC from increasing tariff in June.