*Says Increase In 11 Discos I’ll Timed And Should Be Rejected By NERC
*Says it is Ready to Partner with NERC, DISCOs and GENCOs in Finding Long Lasting Solutions, Asked For Certain Disclosures to The NBA
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The Nigerian Bar Association Section on Public Interest and Development Law (NBA SPIDEL) has submitted that it is the intention of makers of the Law that increment in Electricity Tariff should not be automatic and should be considerate in light of the economic realities thereby creating the room for objections/observations which should consequently make the regulatory body the Nigerian Electricity Regulatory Commission (NERC) refuse the proposed increment of electricity tariff.
This was made known in a MEMORANDUM SUBMITTED BY THE NBA SPIDEL TO NERC IN OPPOSITION TO THE ELCTRICITY TARIFF INCREMENT BY THE 11 DISCOs, signed by the Chairman and Secretary of NBA SPIDEL, John Aikpokpo-Martins and Funmi Adeogun respectively.
The Section of the NBA noted that every person was affected by the increase. “The NBA SPIDEL is the public interest section/arm of the NBA and we are Citizens of Nigeria and Consumers across the Nigeria nation affected by the increment in electricity tariff, lack of electric Meters, and epileptic electricity supply.”
In addition, it noted thus:
“It is apt to note that the intent of Makers of the Law is that increment in Electricity Tariff should not be automatic and should be considerate in light of the economic realities hence it creates the room for objections/observations which should consequently make the regulatory body the Nigerian Electricity Regulatory Commission (NERC) refuse the proposed increment of electricity tariff. This is so important that same provision was retained in the new Electricity Act 2023 (Section 116).”
It reasoned that 11 DISCOs have applied for increment is not automatic for the regulator NERC to grant all their applications for increment.
On reasons for opposing the proposed increment, the NBA SPIDEL that it was ill timed considering the economy realities in Nigeria; that electricity supply is still being subsidized by the government; that there was lack of quality Meters, and lack of Meter reading for billing, amongst other reasons which ranged from the continuous and blatant breach of NERC Regulations by DISCOs without appropriate sanctions to the monopoly in the electricity distribution by the DISCOs.
“The operative word to be considered before increment can be allowed is contained in Section 116 (2) (a) allow a licensee that operates “efficiently”……..
Which of the DISCOs can claim to be operating efficiently? Certainly none is efficient.” It stated.
Furthermore, it reiterated that every persons were affected and should the issue not be attacked and addressed for the better, society would crumble. ” Note, if there is a breakdown of law and order as a result of these insensitive actions; even the DISCOs would no longer exist to recoup their investments. Hence, it is better to create a sane society, where the DISCOs will keep operating, and gradually recouping their profits and investments.” Their words read.
In addition, the Section of the NBA noted noted that it wasn’t just a body that criticizes but as a Reformer is ready to partner with the Commission (NERC), the DISCOs and GENCOs in finding lasting solutions as it is her mandate to also use the Law as a tool of social engineering to develop solutions.
Hence, it went on to humbly in line with the Freedom of Information Act requested the following to be disclosed to NBA SPIDEL in a letter at least two weeks before the public hearing in respect of this proposed tariff increment:
1. All the approved tariffs and increments of the tariffs by the DISCOs and GENCOs by NERC from inception till date.
2. All subsidies paid by the Government and Donor Agencies for each DISCOs and GENCOs from inception till date.
3. All licensing fees and all other fees paid by each DISCOs from inception till date.
4. All the yearly Statement of Accounts of each DISCOs from inception till date.
5. The Assets of the defunct PHCN handed over to each DISCOs from inception till date.
6. The amount spent on electricity energy purchased by each DISCOs from GENCOs and their respective tariffs from inception till date.
7. The Penalties and Fines imposed on each DISCOs and GENCOs and whether they complied and what the funds were used for from inception till date.
8. Yearly compliance graph/indices/data of all the DISCOs and GENCOs with NERC regulations from inception till date.
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