Tariff Hike: NERC Awaits President’s Approval, Plans Stakeholders Meeting

In its position paper obtained by Vanguard, the association stated: “As an advocacy Association, MAN has always pushed for the need to charge cost-reflective electricity tariff to avoid extortion of our members. Fortunately, it is of great delight that this new Act fits like a glove as it will help actualize a cost–reflective tariff considering the healthy price competition it will bring between the states and private investors.”

However, the President, of Nigeria Consumer Protection Network, Mr Kunle Olubiyo, in a note to Vanguard, noted that much value has not been given to consumers despite several past tariff reviews.

He said more investment should be channelled into the capacity expansion of critical power grid infrastructure and network improvements in order to upscale efficient service delivery, quality of supply and customer satisfaction in the post-privatized Nigerian power sector.

He also said, “Government should address matters relating to domestic gas obligation, appropriate gas pricing and gas to the domestic market should be sold in local currency (Naira) for use by gas to power generation power plants.

“Government should provide tax incentives, fiscal and non-fiscal incentives and access to long-term low-interest single digits credit facilities to indigenous meters assembling plants/local meters manufacturers in order to strengthen their production capacity.

“End users of electricity in Nigeria should be given the opportunity to buy pre-paid meters off the shelves. Conversion of the post-paid meters used by maximum demand metered customers who are bulk users into pre paid maximum demand meters in order to enhance energy accountability and customer-centric, customers’ satisfaction & value for money.”