Feature: On Postponement of Electricity Tariffs and Public Perception of DISCOs

By Oluwatosin Ojebisi

Against the backdrop of the electricity tariff increment slated for 1st July, 2020, Electricity Distribution Companies (DISCOs) have raised some salient concerns about the current challenges faced by these companies and the silence of Nigerian Electricity Regulatory Commission (NERC) in the face of the backlash received from customers and major stakeholders.

The new tariff which was initially meant to commence on the 1st April, but as a result of the COVID-19 pandemic was postponed for three months as a palliative measure by the Federal Government. It would be recalled that when the announcement was made, the Federal Government through the Office of the Power Minister, Sale Mamman, stated that; “Tariffs will only be raised as the Distribution Companies (DISCOs) improve the quality of supply, meter consumers and agree with consumers on rates. DISCOs that fail to improve on all these parameters will be sanctioned.”

After three months of making that statement, DISCOs are still struggling to distribute 5,000 megawatts of energy, as compared to what is required of them to distribute. That aside, on the issue of metering, Discos have decried the heavy import duty on the importation of meters and how it has become an impediment in achieving the set 2021 metering target of the Meter Asset Providers (MAP) regulation implemented in 2019.

Some of the questions from various quarters include what could have necessitated an increment in electricity tariffs, advocates are of the view that the funds generated will be invested into certain infrastructures which would improve the electricity situation in the country at large. According to a review by PREMIUM TIMES, it was stated that a price increases would have ranged from 60 per cent in places like Ikeja, to about 73 per cent in Abuja, and about 78 per cent in Enugu.

Are the funds which would be generated be truly used for infrastructures or to offset unpaid debt by the DISCOs? More questions are being raised as regards the stance of the Federal Government and NERC about the new tariff implementation. This was disclosed by Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan.

While Nigerians would prefer an improvement in the sector – before an increment, which has been moved effect to the first quarter of 2021. It is expedient for the TCN, DISCOs, GENCOs, NERC to align as regards power generation, distribution and the synergy that must positively impact the consumers. Also, it is important to ensure that every household has a prepaid meter.

Finally, listening to the feedback from consumers would go a long way in shaping and building the already negative perception of these DISCOs pan-Nigeria.