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HomeNewsEconomyNew electricity tariff: Only court can stop it – NERC

New electricity tariff: Only court can stop it – NERC

Despite the groundswell of opposition against the new electricity tariff, which the National Electricity Regulatory Commission (NERC) kickstarted on February 1, 2016, the electricity Distribution Companies (DISCOs) across the country have reportedly gone ahead to adjust their tariffs to reflect the 45 per cent increase.

Most consumers spoken to by the Sunday Telegraph in Lagos confirmed that their bills have gone up by about 45 per cent. An Ikeja resident, Mrs. Omolara Adebola, who confirmed that she has a pre-paid meter, said that the N3,000 units she was buying before, is now N4,500, while Anthony Ibe in Isolo, said that he is not metered, but he pays a monthly bill of N3 500.

That has gone up to N5 300, he said. He lamented that while his neighbour, who has a prepaid meter, does not exhaust the N3, 000 worth of units he buys in two months, the DICOs collected N3, 500 from him monthly before the new increase. He described the action as ‘criminal’ accusing DISCOs of following the bad example of the disbanded Power Holding Comany of Nigeria (PHCN), by collecting money for services they did not render. Coming on the heels of the recent motion passed by the Senate directing the NERC to discontinue the collection of the new tariff, the Commission has said instead of obeying the Senate, it would rather wait for the outcome of the court decision on the matter. It stated that only the courts can determine the suitability or not of the new electricity tariff.

The Acting Chief Executive Officer of the Commission, Dr. Anthony Akah, who said this in a telephone interview with Sunday Telegraph, said it would be subjudice to speak on the issue since it was before the court, said the court would determine the suitability of the tariff or not. Asked to state what the Commission would do since it lost a stay of execution at a Federal High Court in Lagos, Akah said: “It is before the court and we can’t make comments on such issues as you know.

These are issues that are subjudice and as a responsible organisation we would not be making statement about issues before the court.” On the motion passed by the Senate asking the Commission to suspend the new electricity tariff, he said: “Everything borders on the tariff and we can’t make comments on such issues, we have respect for our National Assembly”. Last year, the NERC under MYTO 2 suspended the fixed charges being charged by the Distribution Companies on consumers and increased electricity tariff by 45 per cent.

But the Commission failed to ensure that the fixed charges had been actually been stopped before the commencement of the new tariff regime. At the time of going to press only about 30 per cent of the country had been metered. For instance in Lagos only parts of the Lagos Island, Mainland, Ikeja, Oshodi, Surulere and Apapa have been metered.

The greater part of the commercial city has not been metered, while the DISCOs have continued to collect fixed charges from customers for services not rendered.

It will be recalled that the Nigeria Labour Congress (NLC) has carried out a protest nationwide at the various offices of the Electricity Distribution Companies and to the Headquarters off NERC. Also some persons had gone to court to challenge the increase.

The Minister of Power Works and Housing, Babatunde Fashola, had supported the hike, stating that for Nigerians to have improved services in the electricity sector they have to pay more for electricity consumption. But the Ag CEO, NERC condemned the protests, saying the action of the organised labour would jeopardise foreign investment in the sector. He said that if the appropriate investment must be attracted into the sector, the price must be good enough to enable the investor recoup his investment.

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According to him, this can only be done by increasing the bill payable by consumers. A Lagos resident in Ejigbo, who said that he does not have a meter, explained that if DICOs can provide meters and increase electricity supply, people will not be bothered much with the tariff hike.

“What are they increasing the tariff for, for darkness? This is not fair to Nigerians,” he said. Meanwhile, some members of the bench spoken to by the Sunday Telegraph, have also decried the seeming decision of NERC to disobey the Senate, saying the legislative body has the power to enforce its motions and bring erring government departments to book.

According to the Principal Partner, Yomi Okunnu and Co., Yomi Okunnu, the Senate has powers to enforce and control excesses through sanctions of erring departments of government or agencies, especially when they give approval to certain actions of the executive. “Senate can stop businesses from taking undue advantage over the consumers.

Of course, if NASS is serious with her functions, such order will be enforced.” The Principal Partner, of Abuja-based Charles I. Ndukwe & Co., Charles Ndukwe said if the Senate really wants to enforce her orders, she can, but the problem is lack of will power to do so.

“The Senate can enforce such orders, though it’s not their major responsibility but they have oversight function over NERC and to do so. The only way it can be enforced is if the government or NASS will impose heavy sanctions on the DISCOs should they go ahead to collect the tariff, especially when the power has not improved,” he said.

A Lagos-based lawyer, Prince Ben Onuora said the National Assembly has oversight powers over the executive arm of government and the NERC is part of the executive, and they are empowered to expose corruption, inefficiency and waste in the execution of the laws by the executive. “If NASS or the Senate in this instance, has the right to mandate or stop NERC’s action and ask them to retrace its steps, then it is enforceable,” he said.

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