Friday, April 5, 2024

ELECTRICITY TARIFF HIKE: THE INSENSITIVITY OF NERC TOWARDS THE DOWNTRODDEN NIGERIANS

 

ELECTRICITY TARIFF HIKE: THE INSENSITIVITY OF NERC TOWARDS THE DOWNTRODDEN NIGERIANS

·        * Criminal Estimated Billing System By Discos– Unresolved

·         * Distribution of Prepaid Meters To Consumers – Unresolved

·         * Unreliable Electricity Supply – Getting Worse

·         * Improvement In Power Generation – Nothing To Write Home About


Dear Nigerian Electricity Regulatory Commission NERC,

Nigerians woke up on Thursday, 4th April, 2024, to the sad news of arbitrary hike in the electricity tariff regime of your administration, with a wave of dissatisfaction and apprehension registering on the faces of Nigerians, who are struggling to survive under the harsh economic conditions presently ravaging the entire nation. One would have thought that a well formulated and articulated plan would have been put in place to ameliorate the sufferings of the Nigerian masses, but alas, the reverse is the case here.

Since the very beginning of Chief Tinubu administration on 29th May, 2023, it has been from one disastrous moment to another, with the downtrodden Nigerians bearing most of the pains. And instead of proffering solutions and reassuring the people of an imminent end to their suffering, more harsh decisions are being churn out every now and then to impoverish the people the more.

With “subsidy is gone” mantra of the Tinubu administration, no friendly or encompassing approach has been made toward ending the undue hardship imposed on Nigerians by the government. The only beneficiaries to this maladministration so far are the very people who are at the corridors of power across the three tiers of government. While the executive and legislative arm of government can budget billions of scarce resources for their personal comfort, the downtrodden Nigerians has been asked to make unending sacrifices should they ever desire to breath. This is so devastating to the commonwealth of the people who feel captured and conquered by the powers that be.

From the foregoing therefore, it is absolutely ill-timed, inhuman, unjust and unacceptable, the announced electricity tariff hike by NERC. This anti-people policy should be reversed with immediate effect and without any delay. Should the speed at rolling out anti-people policies be geared towards fixing the damages on the economic frontier in the Nigerian space, the level of pains, agony, dislocation and trauma that Nigerians experience on daily basis to meet their needs would have been long resolved.

In 2001, MTN and Econet (now Airtel) rolled out their mobile services in Nigeria with per-minute-billing, which was a total ripped off of the resources of the few Nigerians who could afford their mobile services at the time. With a 1 minute, 05 seconds call duration, you are billed for whole 2 minutes, not minding that you only spent 5 seconds of the second minute. This ripping off of Nigerians by these telco at the time continued unabated even with the regulator (NCC) who keeps protecting them that per second billing was not possible despite the outcry against such policy by the Nigerian telecom consumers at the time. However, two years later in 2003, Globacom Limited (Glo), a Nigerian owned telecom operator emerged with per second billing policy from their day one in the Nigerian telecom market. This policy of Glo brought a serious healthy competition to the telecommunication industry with Glo amassing more subscribers to their network as Nigerians soon discovered that they’ve been lied to in the past regarding the possibility of implementing per second billing on telecom services. The hitherto operators who boasted that per second billing was impossible at the time were forced to implement the policy as competition was driving against their business continuation and successes in the Nigerian telecom space. And today, you are billed for the exact seconds you spent in making calls, which is a huge relief to the Nigerian people from being ripped off by the telecoms providers in Nigeria, and all thanks to Glo.

On the electricity space in Nigeria, the service providers have always billed Nigerians for darkness, as a result of the criminal ESTIMATED BILLING REGIME. Instead of NERC to fashion out measures to end this criminality, they have always looked the other way, (just like their counterpart in the telecom sector NCC in the recent past) while the service providers keep ripping Nigerians off. Unmetered and analog metered customers are the major segment bearing the consequences of this criminal estimated billing policy. NERC has a major role to play in ending this criminality, but what have they done? Certainly nothing done in this regard.

In all honesty, what is responsible for the abysmal performance of power generation, transmission and distribution in Nigeria today? With huge resources being budgeted yearly by the government in the sector, why is Nigeria laging behind in terms of adequate power generation and management resources for the good of the people? Will Nigerians pay a good electricity rate when power is available 24/7? Yes, without any doubt. Therefore, NERC should prioritize adequate power generation, outstanding transmission capacity, and robust distribution network to facilitate smooth power operation and see Nigerians jostling to pay for services rendered. This backward approach of putting the cart before the horse should be done away with immediately.

In pursuant to billing Nigerians for the exact number of Kwh being consumed, all Discos in Nigeria should be mandated to provide all-band customers with PREPAID METERS in the first instance, and a well thought-out approach to increasing the electricity tariff in the second considerations, provided the energy is available for consumption. Metered electricity consumers will have no pain in paying exactly what they consumed within any given period. This is the angle the government should be driving, not the avenue to creating more hardship thereby frustrating the needed economic growth to savage our dwindling economy occasioned by the various harsh policies of the government.

In the recent past, the manufacturing sector of our economy has suffered a deadly blow, as lots of multinationals have either relocated to other friendly climes or closed shops completely due to the high cost in running their businesses in the Nigerian space. The ripple effects of this menace are the attendant job losses and a spike on inflation. In order to mitigate this downward trend, the government should as a matter of urgency put policies that will urgently end this ugly development, not to aggravating same with this thoughtless electricity tariff hike. The manufacturing sector is the driving wheel behind economic boom with constant and affordable electricity in place, operating in a secured environment, and not bedeviled with multiple taxation, which has been the clog on the developmental output of the Nigerian state.

Investors are already counting their losses, and instead of the government to point their searchlight towards ending these unpalatable realities, they are rather making the business environment more hostile and unattractive to the desperately needed direct foreign investment (DFI) inflow.  It is therefore pertinent to ask in this regard: Of what economic value is this new electricity tariff hike with over 200% increase?

I hereby urge the government and NERC in particular, to wear a human face in making adjustment to electricity tariff. The reality on the ground speak volume of the average Nigerian that can’t afford sound three square meal a day, and now, the government has added to their woes without any relief in sight soon to ending the associated pains and trauma. All arms of government and citizen engagements should be put in place in order to arriving at a reasonable and acceptable electricity tariff scheme, should there ever be any intention to hiking the price regime.

This is my humble submission. The recent electricity tariff hike should be reversed without any delay. It is therefore a disservice to see those who are supposed to protect you becoming your very archenemy.

Kind Regards,

Lugard Ekhator,

Benin City.




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