Stakeholders oppose electricity tarif increase

Stakeholders in the power industry have opposed the proposed increase in electricity tariff from February 3 by the Nigeria Electricity Regulatory Commission (NERC), the House of Representatives ad hoc committee on electricity tariff and billings has revealed. Chairman of the committee, Rep. Babajimi Benson disclosed this Tuesday in Abuja, after a meeting of all stakeholders attended by the Nigeria Electricity Consumers Advocacy Network (NECAN), Electricity Distribution Companies (Discos) and the Nigeria Electricity Regulatory Commission (NERC).

A short statement issued by the ad hoc committee at the end of the parley, said before agreeing on the suspension of the proposed tariff increase, each group had expressed their respective positions on issues of billings and infrastructure in the power sector. Rep. Benson said while the NERC as the regulator made a case for tariff increase, the distribution companies made a case for a cost reflective strategy to sustain and enable them expand and improve on their service delivery.

However, he added that the consumer group as represented by NECAN opposed the tariff hike on the premise that such an increase will further reduce the purchasing power of individual consumers and affect profitability of businesses. “We are reviewing all the relevant documents provided alongside our engaged consultants and at the same time analysing the proposed tariff review in consultation with NERC, TCN and bulk traders to ascertain the basis of the 2015 tariff model”, the statement said.