Olusola Bello
There is a possibility that the planned tariff increase by the Nigerian Electricity Regulatory Commission (NERC) maybe postponed again, if the commission agrees with the submission of electricity distribution companies who are saying the timing is not right, base on the socio-economic situation of the country.
According to industry sources, the two parties held a three-hour Webinar conference on Monday without making much progress on whether the tariff increment should be announced by July 1st, 2020 or not.
The argument of the distributing companies against the move, it was gathered, was that this period is an inauspicious time for the regulatory commission to come out with such a far-reaching policy when there is no income guarantee, companies are not generating much in revenues, unemployment is on the increase; and all these coupled with an unstable economy.
One of the sources said that the Discos are feeling uncomfortable about what the backlash of such a policy could be and they don’t want consumers to start seeing them as a group of insensitive people.
They queried why the government did not increase tariff five years ago. They wonder how the government would increase tariff when the whole world is experiencing pandemic, adding that there is no justification for the increase at this moment.
But another source close to the commission said it would make public the new tariff by July 1st as planned, even though it is also trying to avoid a situation where it would directly be held responsible by Nigerians for the exercise.
Some of the stakeholders at the meeting, it was learnt were even suggesting that NERC should give six months’ notice before making public the increase in tariff so that it would have used the period to improve on transmission lines
They described the discos as a group that’s always looking for excuses and not wanting to take responsibility. According to them, the Discos demanded for increment in tariff, and when it is time to implement it now they are saying the time is not appropriate.
