The new Multi-Year Tariff Order (MYTO 2015), takes off today amid doubts over commensurate electricity supply. According to reports, a meeting called by the regulator, the Nigerian Electricity Regulatory Commission (NERC) with the Manufacturers Association of Nigeria (MAN) on Friday failed to convince the manufacturers to drop their earlier opposition to the new tariff regime insisting insisted that its members would not discuss the tariffs because the matter was in court.
The Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and other civil society organizationshavehowever rejected the new tariff, vowing to protest as a way of resisting the hike in tariff.
NLC has berated NERC’s decision to increase electricity tariffs without ensuring availability of meters to promote social justice where consumers would pay for exactly the amount of electricity they consume.
According to congress President, Ayuba Wabba, relying on estimated bills is a rip off to consumers. He said, “Congress considers as illegal, unfair, unjustifiable and a further exploitation of the already exploited Nigerians, the 45 per cent increase in electricity.”
Meanwhile, the minister of power, works and housing, Babatunde Fashola, has explained that the new MYTO due to commence today is aimed at correcting the whole system in the entire value chain of the power sector, and said it was the most viable means of achieving steady power supply in the country.
Under the new tariff regime, electricity consumers under the R2 Class (residential) will payN24.30 per kilowatt in Abuja; Benin-N24.08; Enugu-N27.13; Ibadan -N23.09; Jos- N26.93; Kaduna – N27.36 and N28.05 (single phase and three phases); Kano – N20.26 and N26.41; Ikeja – N21.30 and N21.80; Port Harcourt –N24.91; Eko- N24.00 and 25.79; Yola –N23.25 and N24.75 per kilowatt accordingly.
The tariff covers a 10-year period with expectations that the prices will start reducing from 2018 to 2024, when the sector must have advanced to an operational system that guarantees regular supply.
The new tariff order, aside from eliminating fixed charge has a mechanism to ensure that electricity distribution companies fully meter their consumers and eliminate “crazy” billing within one year.Although, the new regime comes with an increase in energy charges, all electricity consumers residential as well as commercial will no longer pay fixed charges.
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