Electricity tariff will increase despite poor supply –NERC

Despite the erratic power supply in the country and frequent system collapses, electricity tariff will continue to rise, the Nigerian Electricity Regulatory Commission has said.

NERC, while defending the Federal Government’s position on the recent increase in fixed electricity charges, said the Multi Year Tariff Order had an approved tariff stipulated for 2012 to 2016.

The MYTO, which was prepared by NERC and obtained by our correspondents, showed that there would be increases in electricity tariff every year till 2016.

The tariff schedule showed that consumers would have to pay higher on two fronts. Every year, the fixed cost will go up. Similarly, the energy cost or cost per kilowatt hour of electricity will also go up.

NERC had consistently said that increase in electricity tariff would be for the short run and that the amount payable by consumers would begin to fall when the country had produced enough electricity.

The annual tariff increase, our correspondents gathered, would be automatic not minding whether there was appreciable improvement in power supply or not.

The Chairman, NERC, Dr. Sam Amadi, while briefing journalists on Monday following public outcry against the recent increase in the fixed charge from N500 to N700 or N800, depending on the location, said, “The truth is that the tariff must increase despite shortfalls in service delivery.”

He argued that the inability of power distribution companies to live up to expectation was not a tenable reason to slash tariff, adding that it was in the interest of Nigerians not to reduce the charges.

Culled from the PUNCH

So let me get this straight?. It is in my interest to pay more for less. Waoh!!! What a very powerful economics, only applicable in Nigeria. Where it is not only normal but very okay to keep paying for something and being given less year in year out..

What a shame. Can you believe that. Shouldn't the NERC and the Chairman be focus on how to bring the ailing power distribution companies to order but No, the normal Nigerian way. Charge you incompetency on the people.

The Government did it with Petroleum; instead of tackling illegal oil bunkering, they push the cost to the people. Now every Government ministry is doing it. Cool.

This same investors will be making Billions of Naira every month for practically doing nothing and to our Nigeria Government, it is just FINE.

Maybe we should begin to look into the ownership of these power distribution companies and the new investors and we could be surprised, they are owned by well placed Nigerian, possibly politicians.