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DISCOs’ Customers Oppose Increase of Electricity Tariff

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May 19, 2020
in Business
Reading Time: 3 mins read
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DISCOs’ Customers Oppose Increase of Electricity Tariff
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Customers of Electricity Distribution Companies, (DISCOs) have said no to increase in electricity tariff, saying that the DISCOs are fraudulent in their commercial activities.

The customers further aggressively clamoured for the availability and provision of prepaid meters, stressing that estimated billing is an act of robbery and terrorism.

These were parts of the expressions of the customers in Ibadan, capital of Oyo State at a stakeholders meeting organised by the Nigerian Electricity Regulatory Commission (NERC) to deliberate on and justify upward review of electricity tariffs by distribution companies.

In attendance were top management staff of Ibadan Electricity Distribution Company, IBEDC, civil rights advocates and community leaders.

Speaking on behalf of the consumers, Mr Adeola Falade, Principal Partner, Initiative for Sustainable Infrastructure Development, noted that upward review of tariffs at this material time would add to the burden of Nigerians, who are not enjoying electricity in the country.

According to him, “We want to urge the federal government as well as NERC not to approve the upward review of tariff because DISCOs are not showing commitment to the electricity service delivery to this nation. Very recently, the Federal Government approved increase in VAT; so you want to increase the burden of Nigerians. We want all electricity consumers in Nigeria to be metered free of charge, and we are saying ‘No’ to upward review of tariff”.

Equally, Mrs Motunrayo Elegberun, from the Manufacturers’ Association of Nigerian (MAN), Ogun State chapter, condemned the planned upward review of the electricity tariff, saying it would have negative effect on the industries.

Speaking earlier, the Chief Executive Officer of IBEDC, Engr. John Ayodele justified the reason for the proposed upward review of electricity tariff, pointing out that the increase in electricity tariff would bring about improvement in electricity supply in the country.

He stressed that the upward review of electricity tariff would enhance better service delivery, adding that the review would guarantee steady supply of electricity and empower DISCOs to be able to carry out constant maintenance of infrastructure.

To the consternation of the participating customers and other stakeholders, he said, “I cannot agree with you that Nigerians do not want a tariff change. What they deserve is better service and this can only come with a price. So if the government is not subsidising, it is better we get something that is cost-reflective, where investors can make enough money to reinvest again. The essence of tariff change is to make sure that the system itself gets to a level where it can pay for itself”.

Mr Musiliu Oseni from the NERC stated, “We exist because of you; no consumer, no DISCOs; no DISCOs, no TCN; no TCN, no GENCOs; and without all of them, no Nigerian electricity supplying industry and no Nigerian Electricity Regulatory Commission. NERC has capped the estimated billings to ensure that consumers are billed adequately. We understand the pain of the consumers in terms of estimated billings, and to curb this, the commission states that the amount of energy a consumer consumed should be calculated at the end of the month and payment made on that. It is not completely true that it is N1,800 for estimated billings, because it varies from one business unit to the other and from one DISCO to another. What we are doing is to ensure that no consumer pays more than his neighbour who has the same consumption profile”.

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