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| Electricity Meter |
The Electricity Distribution Companies, DISCOs, yesterday, rejected calls by the Senate to suspend the new electricity tariff regime, arguing that suspending the implementation of the tariff will plunge the nation into continued darkness and as well diminished its prospects for future growth of the economy.
The DISCOs also warned that absence of a market priced tariff would endanger the viability of the entire value-chain of distributors, generators, transmission and gas suppliers, resulting in the failure of the sector.
Recall that the DISCOs had on February 1, 2016 commenced the implementation of a new electricity tariff, which would see consumers pay 40 per cent above what they currently paid.
But the Senate, sequel to a motion moved by Suleiman Nazif (APC, Bauchi), Tuesday, had unanimously passed a resolution, urging the Nigerian Electric Regulatory Commission, NERC, and electricity distribution companies, DISCOs, to suspend the 40 per cent electricity tariff immediately and go back to the old template.
Reacting to the Senate’s position on the new tariff, the DISCOs in a statement by Barrister Sunday Oduntan, Executive Director, Advocacy and Research, Association of Nigerian Electricity Distributors, ANED, noted that the absence of a market priced tariff would create the possibility of performance failure by the operators.
The statement read: “The Senate on Tuesday, February 16, 2016 passed a resolution directing the Nigeria Electricity Regulatory Commission, NERC, to suspend the recently implemented electricity tariff (MYTO-2015).
“However, implementation of this resolution is not without consequences and the following, a market priced tariff is a fundamental requirement under the agreements signed between Distribution Company, DISCOs, operators in the Nigerian Electricity Supply Industry, NESI, and the Bureau for Public Enterprises, BPE, raising the concern for sanctity of contract.
“The absence of a market priced tariff creates the possibility of performance failure by the operators. Such a failure will be at a price that the government can ill-afford in these times of dire economic challenges.’’
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