NACCIMA, energy expert fault electricity tariff rise

The National Association of Chambers of Commerce and Industry, Mines and Agriculture has condemned the increase in electricity tariffs as announced by the Nigerian Electricity Regulatory Commission on Monday.

The National Vice President, NACCIMA, Billy Gillis-Harry, said that before the increase in tariffs, consumers had been paying for more than what they consumed because of what he described as inefficiency in the system.

 “Whether we like it or not, we are paying more, because if your bill is N2,000, you will discover that your consumption is not up to N1,000,” he said.

 Also commenting on the removal of fixed charges, an energy law and policy expert at Banwo & Ighodalo, Mr. Ayodele Oni, said, “I am not sure it makes a lot of difference in the economics for the consumers because the fixed charge is N750.

“What is N750 in the equation, especially if they bring estimated bills that are outrageous? For me, I am not sure it makes a lot of difference; psychologically, it might, but if you dig down to the numbers, it doesn’t make any difference.

“The crazy bills that they bring are usually the energy charge. The fixed charge is not crazy because it is a fixed amount, depending on what class of customer you are. Removing the fixed charges doesn’t make a lot of difference because the numbers are small compared to the total monthly energy bill.”

He said with the removal of fixed charges, consumers would not pay any money if there was no electricity because they would only be paying for the energy consumed.

“The only problem is estimated billing. If they don’t deal with estimated billing, it is still going to be a problem. If people are properly metered and there is no such thing as estimated billing, then the new tariffs will make sense. But if there is estimated billing or there is no cap on estimated billing, it doesn’t make a lot of difference that fixed charge is removed,” Oni added.

Similarly, Gillis-Harry called on the Federal Government to be cautious about removing the subsidy on petrol to avoid any negative impact on the people.

“I believe that Nigerians are willing to embrace change for the value that will give them a better standard of living. You cannot just wake up and say that you are removing subsidy on fuel,” he said.