By Kolawole Ojebisi
It is no more news that the electricity distribution companies in Nigeria had concluded plan to hike their tariff starting from July 1. The New Diplomat had reported how the distribution companies couched this new development and the various reasons given for embarking on it.
But there are indications that the the Nigerian Electricity Regulatory Commission (NERC) is trying to dissociate itself from the decision to review tariff upwards by the discos.
Officials of NERC reportedly told journalists in Abuja on Sunday that the Discos should stop mentioning the name of the commission when making such announcements.
“The tariff is for them. They requested that it be increased. They should tell customers why it has to rise and should stop mentioning NERC when announcing it,” an official of the commission said.
Reacting to the statement from the NERC, the electricity distribution companies insisted the July increase in electricity tariffs was not a unilateral decision by the power firms.
They said the Nigerian Electricity Regulatory Commission was involved in the decision as the distribution firms could not increase tariffs without the involvement of the regulator.
Speaking under the aegis of the Association of Nigerian Electricity Distributors, the Discos faulted the stance of NERC. The Executive Director, Research and Advocacy, ANED, Mr Sunday Oduntan, said, “We are in a regulated sector. We cannot take a decision about a very critical aspect of the sector like tariff without a nod from the regulator.
He said:“We would like to inform Nigerians that tariff review (upward or downwards) is the primary responsibility of NERC as our regulator. We are required to submit our proposals and they have the final say.
“Hence we were surprised to receive a letter from NERC to all the Discos warning them not to mention their name or that of the Federal Government in any public communications on tariffs.”
“The fact that the action is deliberately made to look unilateral is capable of creating public resistance, effectively setting Discos up for failure,” Oduntan added.
