Questions begging for answers over increase in power tariff, by Nze Chidi Duru

Not many Nigerians will describe the power generating companies (Gencos) and Distribution Companies (Discos) as serving the purpose for which the ancient National Electricity Power Authority (NEPA) was unbundled and privatised.

For Nigerian consumers of electric power, it had been different expressions of dissatisfaction with the entities that purchased different operational aspects of the old NEPA in 2013. Of course, the sale of the old NEPA has not been without strong suspicion of the administration at that time parceling the unbundled NEPA to friends and cronies. This is reflecting in the operational efficiency of the successor Discos and Gencos becoming leeches on the national economy rather than adding value to the economy.

The Federal Government have had to intervene in the operational sustainability of both the Gencos and Discos at different times so much that at the last count, more than N3trillion have been expended on the entities by the Federal Government. And we are talking of private entities here for that matter!

The latest among the operational iniquities being perpetrated by the Discos and Gencos and their regulators, the National Electricity Regulatory Commission, is the unilateral increase of electricity tariff by more than 250 percent from N66 to N225 kilowatts per hour.

Though the NERC explains that the tariff increase only affected customers in Band A, those who enjoy a minimum of 20 hours a day of electricity. Yet, most customers in this category had never stopped complaining about deficient electricity supply, definitely not anything near the 20 hours a day of power supply as bandied by NERC.

In the first instance, what manner of guarantee is in place to ensure a possible 20 hours of power supply as announced? How will this be enforced on Discos that had, more or less, become laws unto themselves, and what are the available sanctions in place for non compliance?

These are questions begging for answers and which clearly indicate that
this is another example of state capture by the influential people behind the Gencos and Discos who are actually the ones regulating the regulators.

At the minimum, I suggest that even if it is only to serve the purpose of equity, stakeholders who are affected by this increase should be consulted for their inputs on their expectations from the Discos in the face of the increase.

Nze Chidi Duru, OON, is a serial entrepreneur, Founder/Chairman, Grand Towers Limited, former member, House of Representatives (1999-2007) and presently, the Deputy National Organizing Secretary of the ruling All Progressives Congress (APC)