Kwara MAN rejects monthly review of electricity tariff


The Kwara and Kogi States Branch of Manufacturers Association of Nigeria (MAN) has kicked against monthly review of  electricity tariff by the Distributing Companies (Discos) in Nigeria.

The Executive Secretary of the association, Mr. Gbenga Johnson Adeola, during a chat with Pilot Business on Wednesday, stated  position of the state  executive on the issue.

He said, “We have been experiencing epileptic power supply and the Ibadan Electricity Distribution Company (IBEDC) and its counterpart in Kogi have continued to charge us on monthly basis without consideration for the volume of  watt being consumed by individual companies.

“All stakeholders must come  together and speak against this excessive manipulation  of maufacturers and other industries by the discos  because this is crippling our businesses.”

According to him, if the Federal Government is sincere on encouraging local investors and industries, then the issue of constant power supply should be given optimum priority among other factors like multiple taxation.

He called on government at all levels to take necessary steps in stabilising the economy through tax waiver policies to industries as the country is reportedly exiting recession.

Earlier, the Electricity consumer groups had  rejected the proposed monthly or quarterly minor review of tariff by the Nigerian Electricity Regulatory Commission (NERC), saying it should remain semi-annual as it was since 2012, or be made annual.

The various groups and individuals spoke at the stakeholders’ consultation of the NERC in Abuja on Tuesday, arguing that the Multi Year Tariff Order (MYTO) 2015 was signed in December 2015 but implemented in February 2016.

Although NERC said some minor reviews holding every six months have been done, none however has been implemented for the last 21 months.

The Vice Chairman of NERC, Engr. Sanusi Garba, in his address said the consultation was to help change the frequency of tariff review. He noted that it was not about increasing the current tariff but to check the various indices and proffer a better period for the review and implementation.

NERC in a presentation at the consultation said the MYTO was adopted in 2007 and was amended in 2012 when its review was changed from annual to the semi-annual review process.

NERC said since implementing MYTO 2015, there has been rise in foreign exchange (forex) from N198 to over N300, resulting in the electricity market shortfall. It also said power generation dropped due to gas constraints and to vandalism from the projected 3220 gigawatts (gw) to about 1,500gw.

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