Some experts in the power sector have urged President Bola Tinubu’s administration to begin the installation of the pending five million metering to households under the National Mass Metering Programme (NMMP) to reduce Nigerians’ suffering.
In separate interviews on Tuesday in Lagos, the experts said the Multi-Year Tariff Order (MYTO) had already stipulated that a major and minor review of electricity tariffs should be done yearly.
The Nigerian Electricity Regulatory Commission (NERC) will, from July 1, increase electricity tariff by 40 per cent under MYTO.
Adetayo Adegbemle, an expert, said the NMMP, under the last administration, was supposed to cushion the effect of subsidy removal from the electricity tariff but failed to meet its target.
Mr Adegbemle said it would be a great opportunity if the current administration could immediately set about installing the pending over five million meters promised to consumers to ease their suffering.
“The MYTO, over the years, has been heavily dependent on inflation and foreign exchange benchmarks against dollars.
“We should not base our tariff against factors we do not have any control over,” he said.
Another expert, Sina Odugbemi, said, “It is not difficult to conclude as long as the steps taken right from the beginning of privatisation have been purely profit-oriented.
“It does not appear that the DisCos are in any way interested in improving services.
“By now, 90 per cent, if not all subscribers, ought to have been metered. Rather the DisCos have continued to exploit subscribers with exploitative estimated billings amid poor services.”
Mr Odugbemi said the planned 40 per cent increase in tariff, coming on the heels of an astronomical hike in the price of fuel, would be a double jeopardy.
He said the government must move to avoid the harsh effect on the people.
Ayodele Oni, partner, Bloomfield Law Practice, said that under NERC’s MYTO, there is supposed to be a minor review which could be upward or downward.
Mr Oni said with the review of electricity tariffs every six months, taking into consideration several macro-economic and other indices, including the consumer price index, forex, gas price etc., “It is, thus, expected that there will be a price review in July 2023.”
“However, the government does need to take steps to ameliorate the adverse impacts on the populace,” he said.
Mr Oni said an increase of up to 40 per cent is relatively high.
He said the government needs to consider palliatives for Nigerians to cushion the general effect of the economic situation in the country.
(NAN)
