Say No To Electricity Price Increase
Fellow Nigerians, It has been over 5months that PowerUpNG has been pointing out the ills and anomalies in our Electric Power Industry, and apparently, the Administrators of the Nigerian Electricity Regulatory Commission still feels this is about scandalizing their ‘great effort’ and the favor they are doing us all.
Even when this body(PowerUpNg) claimed that we have more information that would prove our point of ineffectiveness of NERC, and how they have taken sides with the Operators against consumers, one of the Commissioners, a public officer, who should know better to conduct and comport himself in the public, openly declared that we should go ahead, quoting Lord Wellington.
Further proves of our allegations has been brought to the fore by the declaration of Dr. Sam Amadi, Chairman/CEO of the Nigerian Electricity Regulatory Commission, when he announced the review of electricity tariffs under the Multi Year Tariff Order (MYTO2) framework for 2014.. I will quote The Nations report, which is quite the essence of the news coverage, as a background to this writeup.
“Nigerian Electricity Regulatory Commission (NERC) Chairman Dr. Sam Amadi told reporters in Abuja that “the Review has reduced fixed price charge component of the tariff”.
Explaining the implication of the review, he said Abuja Electricity Distribution Company’s R2 customers, for instance, who have been paying N13.75 per unit will pay N14.90. The fixed charge remains unchanged, he added.”
He further down the line stated that “Some positive variables culminated in the significant changes in the tariff review. He said “Whilst MYTO in 2012 has projected a 13percent inflation rate; it was by March 30 at 7.8 per cent, less than 5.2per cent of projection. Exchange rate of $1 to N178 from CBN data was less as at March 30 to N157 per $1, 11.6per cent less than projected.”
One more point Amadi added was “Many Customer by 1st June should be paying a Fixed Charge(FC) of about N1, 500 but the adjustment has resulted in a decrease in that the fixed charge will not change, but will remain at N750.”
Taking this report in isolation portrays Sam Amadi and NERC as doing Nigerians a favor. This is a BIGLIE.
Lots of questions are raised by industry watchers, some of which has been put across to Sam Amadi himself, and to which he has refused to provide answers.
Has the Power Generation improved in Nigeria? Has there been an improvement in Transmission of Power to consumers? Has the quality of customer service improved? The MYTO2 Framework was signed and expected to have gone into operations in 2012, provided the Private Investors took off in 2012, but they did not take charge of their respective operations until November 2013, a year later, How come some part of the rules were effected while some others have been ignored?
Let’s go first in to the provisions of the MYTO2 Framework itself. There are conditions that must be met before the MYTO2 framework itself can be effective, how much of this has the Nigerian Electricity Regulatory Commission, under the leadership of Sam Amadi, effected and enforced???
I will just copy and paste the conditions for the MYTO2 framework to be effective, as stated in the MYTO2 Framework”
8 Date and Conditions for Effectiveness
NERC considers that it is proper to balance the increased revenues that the NESI will receive, in the face of a current below average levels of quality of service and minimal increases in energy supply to consumers, with pressure on Discos to rapidly evolve higher standards of customer care and cost-effectiveness. NERC has applied this pressure with some success even before the tariff increase takes effect and will continue to apply such pressure using all regulatory instruments at its disposal. From 1st June 2012, NERC will begin to review the performance of the Discos in relation to the performance standards stated below. These standards are applicable to all Discos. However, after a specific moratorium period to give time for new owners to arrive, turn management round and start showing signs of a viable business, sanctions will be imposed for failure to conform to these standards of performance. These standards are designed to result in a rapid increase in technical performance, customer care and regulatory compliance. This Tariff Order, as with the other two, shall take effect as from midnight of 31st May 2012. The standards initially set for the Distribution sector are as follows:
- 1. Opening of fully-equipped and staffed Forum Offices at locations within the Disco franchise area agreed with NERC
- 2. Opening of fully-equipped Customer Compliant Units (CCU) by all the Distribution Companies.
- 3. The submission of information on each Disco’s current metering programme funded from its share of the =N=2.9bn Federal Government metering fund provided in 2011;
- 4. The submission of a Metering Plan for the Commission’s approval within two (2) weeks from the date this Tariff Order takes effect. The Plan shall include, amongst other, details of the timelines, milestones, and scope of its implementation.
- 5. Full implementation of the Customer Metering Plan, as approved by the Commission, within eighteen (18) months from the date this Tariff Order takes effect. Failure to strictly comply with the terms of such Metering Plan will be met with sanctions from the Commission; and
- 6. The development and implementation of a single standard or set of principles for estimating the consumption of unmetered customers and the strict use of such standards in accordance with the applicable customer service rules already established by NERC (please see the Customer Service Standards of Performance and Meter Reading Regulations and similar customer care regulations at www.nercng.org).
Should we take the Conditions one by one? How come it is just the financial part of the MYTO2 that Dr. Sam Amadi and NERC has chosen to implement and enforced on poor Nigerians? How many of these 6 Conditions has been met? How come the Metering plan has not been completed before MYTO2 taking off? Where is the single standard for estimating consumption of unmetered custormers? Where is the enforcement?
Months after the taking over by the private companies, no noticeable improvement in power generation, not to talk of electricity distribution. On What premise is the Increase in Tariff?
Even at that, and by Sam Amadi’s confession, the economy has performed much better than projected for, and so if there is to be any review, it should have been downwards, if any at all.
We also find disgusting the notion that the Fixed Charge has been “reduced” because of these indicators. There was NOWHERE in the MYTO2 framework where any Fixed Charge would have been N1, 500 by 2014, how come he’s saying it as if he’s doing us all a favor?
Did anybody know what has happened to the N2.9bn Federal Government Metering Fund provided in 2011? How many people even know about it? Can Sam Amadi please be accountable to people? Should he be held accountable?
Nigerians, we have an Electric Power epidemic in our hands, and we are clearly being short changed by the people we have chosen to lead us out of the woods. These people have proven time and time again that our interest is not paramount in all they do.
If not, how come the whole NERC would be fighting to control the “gas industry” and put all our hopes on “dry gas”?
Nigerians, WE are in TROUBLE. We need to hold Sam Amadi and the Whole NERC accountable and responsible for their acts. He has been compromised. Greatly.
They advised the Federal Government that we would be doing 10, 000MW by June. This is June, and instead for Sam Amadi to step aside, and allow someone else try, greeted us with the Increased Energy Tariff.
The major reason why we have shakeups in major corporations is so that new ideas and management would the take the organization forward. Same should be done at NERC.
For the avoidance of doubt, PowerUpNG demands are:
- The illegal, uneven and oppressive Fixed Charge Should be REMOVED immediately,
- A proper audit of every house should be carried out, and the concept of “Estimated Billing” Should be done according to the Regulations, and Explanations made to Consumers,
- And lastly, the Electricity Distribution Companies Should starts the installations of Meters immediately.
We at PowerUpNg enjoined ALL Nigerians, to STAND UP and AGAINST this cabals that has held us and our future to ransom for this long.
Our Petition against Sam Amadi and the NERC will be going live by Monday June 2nd, 2014. Lend your voice, and let’s take back our nation from this slavery.
Adetayo Adegbemle is a public opinion commentator/analyst, researcher, and the convener of PowerUpNigeria, a Power Consumer Advocacy Group, based in Lagos. (Twitter: @gbemle, @PowerUpNg)