Senate orders immediate reversal of new electricity tariff

The Senate on Tuesday directed the immediate reversal of the recent hike in electricity tariff announced by the Nigerian Electricity Regulatory Commission.

Power electricity

The upper chamber, gave the directive while adopting a two-prayer motion moved by  the All Progressives Congress member representing  Bauchi North, Senator Suleiman Nazif.

The  senate also asked its committee on Labour to carefully review the law establishing NERC with a view to making it a strong regulatory body that will ensure that both the consumer and investor will be treated fairly and equitably.

It also mandated the committee on Employment, Labour and Productivity to organise a public hearing of stakeholders, including the Ministry of Power; the  NERC; DISCOS; and GENCOS so that an acceptable way of resolving all issues relating to the sector could be effectively resolved.

Nazif lamented the alleged arbitrary increase of the tariff and insisted that due process was not followed as stipulated in Section 76 of the Power Sector Reform Act 2005.

He also argued that the new tariff would have a multiplier effect on the Nigerian economy with the manufacturing companies being forced to pay more for power consumption.

He added that most consumers were not provided with meter in accordance with the Memorandum of Understanding dated November 1, 2013.

According to him, the document stipulated that within 18 months of gestation period, all consumers would have been provided with meter.

He further accused the Discos of continuously exploiting Nigerians and increasing their burdens.

He said, “The distribution companies have continued to exploit Nigerians by estimated billing system for the majority of consumers while deliberately refusing to make ore-paid meters available.

“Privatisation in any part of the world is meant to inject fresh funds into the concerned sector and not to impose ridiculous tariff on helpless masses.

“The increase is only intended to protect the investment of select few and not to serve the interest of Nigerian masses who are already battling with the prevailing economic recession. The increase in tariff will pave way for additional heavy burden on consumers and coupled with challenges in the economy.

“It will adversely affect the purchasing power of Nigerian workers and the entire Nigerian masses and by extension, aggravate restiveness in the country.”

Deputy Senate President, Ike Ekweremadu,  described the increase as wicked and unfortunate.

He said the new tariff should be randomly condemned and immediately withdrawn in the interest of hapless citizens of Nigeria.

He added that troubling the citizens who are already wallowing in abject poverty and acute state of insecurity, should not be encumbered with further hike in electricity tariff unless there is a plan to frustrate the the people.

Also speaking on the motion, Senator Dino Melaye (Kogi West), said the recent increase was the fourth since the privatisation exercise was concluded.

He added that whereas Discos always hinge such increase on moves to improve power supply, yet there is no stable power supply neither are metres made available.

Senate orders immediate reversal of new electricity tariff

Court stops NERC from increasing electricity tariff

A Federal High Court in Lagos on Thursday restrained the Nigerian Electricity Regulatory Commission, (NERC), from implementing the new electricity tariff which was to take effect from June 1. The Judge, Justice Mohammed Idris, gave the order, in a ruling on an ex-parte application filed by a Lagos-based lawyer, Mr Toluwani Adebiyi.

Prepaid meters

Idris restrained the NERC and the electricity distribution companies from effecting any increment in electricity tariff pending the hearing and determination of the suit. Adebiyi, who argued the ex-parte application, had urged the court to restrain the NERC and the electricity distribution companies from implementing such plans to avoid further hardship and unjustifiable tariff increment on Nigerians.

Thhe Chairman of NERC, Dr Sam Amadi, had, at a news conference in Abuja, announced plans by the Commission to implement the upward review in electricity tariff from June 1. However, Idris, after entertaining arguments from Adebiyi, ordered the NERC to maintain the status quo of the substantive suit till the hearing of the suit. The judge ordered that the motion and other processes in the suit be served on the NERC.

Idris also granted leave to the applicant to serve the originating summons, the affidavit in support, list of exhibits and the written address on the defendant in Abuja, which is outside Lagos judicial division of the Federal High Court. The judge also adjourned the suit to June 11 for hearing. Adebiyi, in the suit, is seeking an order restraining the NERC from implementing any upward review of electricity tariff without a meaningful and significant improvement in power supply at least for 18 hours in a day in most communities in the country.

He also wanted an order restraining the NERC from foisting compulsory service charge on pre-paid meters not until “the meters are designed to read charges per second of consumption and not a flat-rate of service not rendered or power not used.” He also wanted the service charge on pre-paid meters not to be enforced until there is visible efficient and reliable power supply like those of foreign countries where the idea of service charge was borrowed.

Adebiyi is also asking for an order of the court mandating the NERC to do the needful and generate more power to meet the electricity use of Nigerians. He added that the needful should include and not limited to a multiple long-term financing approach, sourced from the banks, capital market, insurance and other sectors ofFINANCE to power the sector.

The lawyer is also asking the court to mandate the NERC to make available to all Nigerians, within a reasonable time of maximum of two years, pre-paid meters as a way to stop the throat-cutting indiscriminate estimated bills and which must be devoid of the arbitrary service charge, but only chargeable on power consumed.

In an affidavit in support of the suit personally deposed to by the applicant, the lawyer lamented that despite the motto and mission of NERC which were expressly stated as “keeping the light on and to meet the needs of Nigeria for safe, adequate, reliable and affordable electricity”. He said that most communities in Nigeria do not get more than 30 minutes of electricity supply, while the remaining 23 hours and 30 minutes were always without light and in total darkness.

 

Court stops NERC from increasing electricity tariff

Electricity tariff: Why I intervened - Oshiomhole

Governor Adams Oshiomhole of Edo State said he had to intervene in the disagreement between Civil Society Organisations in the State and the Benin Electricity Distribution Company in the interest of justice, public good and stem a breakdown of law and order.

Oshiomhole

Speaking during a meeting at the Government House with executives of the Benin Electricity Distribution Company (BEDC) in Benin City , Oshiomhole recalled that what led to what is now globally referred to as the Arab Spring was a solo protest by a man who committed suicide.

According to him, “I called this meeting for us to talk through some of the issues raised by the leaders of the Civil Society Groups that organized some protests specifically against some of the actions of the Benin Electricity Distribution Company (BEDC), so I thought our role here as a State Government is basically to facilitate a dialogue between the consumers of electricity, who happen to be my employers, and have complained about the policies with regards to some charges by BEDC. I thought that we can talk through the issues and hopefully get results and resolve it in an amicable manner so it does not result into a major crisis.

“We all know how one single man started what is now known as the Arab Spring. It has consumed Governments and destabilized economies. So, when I heard people were protesting and I asked questions, I was told about money collected without services. I then appealed to my Civil Society people that we might need to engage the company and let us see how we can sort it out.

“The facts are not in dispute, there are no arguments whether or not there are fixed charges. There is no argument or not whether these charges are paid even when services are not provided. We have agreed that, that is the case. There is no argument about the fact that someone sits down and makes estimates for what he thinks that a customer ought to pay, which may be understated or overstated.

“MD, you will recall the day I had the honour of receiving you in my office, when you formally introduced your company to us. I made some statements namely that privatization will lead to greater efficiency and I remember I told you that a private service provider cannot collect money for services not rendered, and therefore the challenge of privatization and the beauty of it is that you pay only for what you consume and the service provider has certain obligations; both as a market player, but also in the eye of the law.

When I began to hear the complaints and about the protest, it just reminded me about the things that I said to you.

“For me, the issue here is not what the regulatory authority wants to do; they cannot regulate in such a manner as to compel someone to pay for something he has not consumed. If they seek to do that, they will be acting outside the law. No law in a democracy can empower anyone to collect money from anyone who has not been offered a commodity or a service.

If they so legislate, it will fail, because the primary document of the country which is the Constitution states that the State must protect the citizens, so it amounts to State collaboration if any State authority, maintained by tax payers money, uses its privileged position to regulate in a way that will lead to people paying for services they did not consume.

“I understand as part of your explanation that the reason why consumers must pay fixed charges even if they don’t get electricity for months is that whether or not the power is distributed to them, someone has generated power and that person needs to be paid. I find that very laughable and completely offensive.

“The electricity regulatory Commission cannot endorse practices that bother on complete exploitation and my attitude is simple: if all the other people, the other States accept it, in Edo State we have a duty to protect our people against exploitation and we cannot endorse those practices and we reject them flat. If you generate power and you could not distribute it, why would you call on me to pay for it”, he asked.

Earlier, Managing Director of BEDC, Mrs Funke Osibodu said there are three main parties involved in power: The Generating Companies, the Transmission Companies and the Distribution Companies.

She said the fixed charge collected by the Distribution Company is for the whole chain.

She said the tariff is set by the Nigerian Electricity Regulatory Commission (NERC) which engages all stakeholders before fixing the tariff. She said: “They set the tariff and then the Distribution Companies use the tariff to execute. We have highlighted that Benin was not the highest and it was not the lowest either.”

She admitted that the Distribution Company was involved in estimated billing, saying “it is true.”

Electricity tariff: Why I intervened - Oshiomhole