TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Tariff review and the plight of consumers – THE CITIZEN

The Citizen by The Citizen
August 11 2014
in Headlines, Uncategorized
A A
0

The Nigerian Electricity Regulatory Commission [NERC] has proposed a review of retail tariff to be paid by consumers for their energy consumption. This is at a time that complaints by electricity consumers on poorelectricity supply are getting to a climax. The commission recently instructed that a customer who has not received continuous or cumulative electricity supply for a period of 15 days in a month shall not be required to pay a fixedcharge provided that the disruption is not due to non-payment of electricity bills.

Both consumers and electricity distributors have raised concerns over the implementation of the commission’s order. The purpose of regulation is to create the necessary incentives to encourage investors to embark upon capacity expansion as well as ensure consumer protection and satisfaction. These objectives need to be pursued with a balanced approach as NERC returns to its strategy room to consult and deliberate on the matter.

Tariff regulation is one of two new regulations that have been proposed by the commission to be introduced in the electricity sector. Tariff regulation specifies the procedure ​that will guide the operators in the sector in applying to NERC for a tariff review and the steps that the commission will take is responding to such requests.Draft copies of two regulations have now been presentedto industry players and other stakeholders for review.

According to the draft tariff regulation, tariff review shall be considered where additional investments proposed by the operators on facilities or networks have not been factored in the existing approved tariff. These includeemergency expansions and facility replacements. The problem with this provision is that the ultimate purpose for the proposed investments is not factored in. The question is should tariff be reviewed on the basis of proposed investments or on the basis of the marginal increase in the benefit to consumers.

The commission should insist that the additional gains of the new investments planned by the operators should be specified and delivery should be confirmed. The way it is going right now is no different from the trend in the past whereby money is spent or claimed to have been spent to build new capacities in the electricity sector without any improvements to show for it in terms of electricity supply.

Huge sums of money have been spent in this country for the purpose of improving electricity generation and supply since former president, Olusegun Obasanjo began to set targets for electric power generation. Huge funds werespent, the targets for electric power generation werenever achieved but tariffs were raised.

President Goodluck Jonathan made improvement of electricity supply a priority of his government at the commencement of his administration. A lot of money and effort have again been committed to the electricity sector, the objective of improving electricity supply is yet to be achieved but tariff has again been increased. This trend is simply what NERC has expressed in writing in its draft regulation – that new or proposed investments in electricity generation or distribution should warrant a review of electricity tariff whether or not they lead toincreased service delivery to consumers or not.

Electricity consumers are not opposed to paying more for services consumed: what they are kicking against is basically charging for services not rendered. A situation where charges continue to go up while service delivery remains poor or continues to deteriorate is bound to be resisted by the consuming public. The obvious form of resistance is unwillingness to pay the bills. That resistance has continued to grow in the face of estimated bills.

Despite the entry of private operators into the sector, the situation still appears to be business as usual. The apparent inefficiency of PHCN to charge consumers according to what they consume is still continuing with estimated bills, electricity generation remains constrained as before while pressure continues to mount for upward tariff review. Where is the innovation expected with private sector involvement in the sector? Where is the efficiency of the private sector in service delivery and customer satisfaction?

If NERC is committed to getting the feel of consumers in the issue of tariff review, the question of estimated billing, which hides inefficiency in the business, is the heart of the matter. Increasing charges without improving supply is the critical point of conflict of interests.

It should be taken for granted that private sector operators should have anticipated new investments necessary in the post acquisition operations for them to improve electricity supply. NERC should insist that such investments be made at least over the first five years, the expected improvement in electricity supply achieved before consumers should be called upon to pay more.

NERC and service operators should rest assured that consumers are very willing to pay more when electricity supply improves. The need to first improve service delivery is to enable consumers save cost from running private generators, which they can devote to meeting the increased tariff. This is the way that NERC can empower consumers to pay increased charges for electricity. Otherwise, an upward review of tariff without improving supply will lead to consumer resistance and create more bad debts for distributing companies. There cannot be a fairer basis for billing people than the actual service consumed.

Previous Post

Ebola: Catholic church suspends Sign of Peace during Mass

Next Post

New Ebola case confirmed in Lagos

Related Posts

Pres. Tinubu swears in two new ministers
Headlines

Tinubu orders arrest, suspends three perm secs as ICPC uncovers new fake agency

August 21 2026
93 percent of inmates are state offenders, half don’t need jail — Interior Minister
Headlines

FG declares Tuesday public holiday for Eid ul Mawlid

August 21 2026
US Congress okays bill to cut foreign aid to Nigeria
Headlines

FBI asks US court to keep records on Tinubu drug trafficking probe secret

August 21 2026
DSS rejects foreign funding for proposed security trust fund
Headlines

DSS alerts Sokoto as terrorists target tertiary institutions

August 21 2026
Governance

States get special N435bn for security, infrastructure

August 21 2026
Auto Draft
Headlines

Presidency, OPS kick against Atiku’s petrol subsidy push

August 21 2026
Next Post

New Ebola case confirmed in Lagos

Garki Hospital: No recorded case of Ebola yet

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Adeleke chairmen seize Osun LG secretariats

Adeleke chairmen seize Osun LG secretariats

by The Editor
August 18 2026
0

...

APM sweeps Bauchi LG poll, wins all 20 chairmanship seats

APM sweeps Bauchi LG poll, wins all 20 chairmanship seats

by The Editor
August 18 2026
0

...

Lagos Council defies NLC directive to skip Pro-Tinubu Group inauguration

Lagos Council defies NLC directive to skip Pro-Tinubu Group inauguration

by The Editor
August 12 2026
0

...

Federal High Court relocates Lagos division to new complex

Federal High Court relocates Lagos division to new complex

by The Editor
August 6 2026
0

...

APPOINTMENTS

Tinubu names new Head of Service

Tinubu names new Head of Service

by The Editor
August 19 2026
0

...

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

by The Editor
August 8 2026
0

...

Police IG deploys new CPs to eight states, other formations

Police IG deploys new CPs to eight states, other formations

by The Editor
August 7 2026
0

...

Katsina governor swears in four permanent secretaries

Katsina governor swears in four permanent secretaries

by The Editor
August 6 2026
0

...

ODDITIES

Man sets mother on fire in Cross River over witchcraft accusation

Man sets mother on fire in Cross River over witchcraft accusation

by The Editor
August 20 2026
0

Celestial Church begins probe into Temitope Osoba’s death

Celestial Church begins probe into Temitope Osoba’s death

by The Editor
August 13 2026
0

Indimi joins appeal against $43.5m judgement award to daughters

Indimi joins appeal against $43.5m judgement award to daughters

by The Editor
August 6 2026
0

GLOBAL NEWS

UK warns citizens against travel to 28 Nigerian states over terrorism, kidnap risk

UK warns citizens against travel to 28 Nigerian states over terrorism, kidnap risk

by The Editor
August 21 2026
0

...

Country of Particular Concern: We cannot remove Nigeria’s CPC tag — US Congressman insists

Country of Particular Concern: We cannot remove Nigeria’s CPC tag — US Congressman insists

by The Editor
August 21 2026
0

...

Canada flags Nigeria, 16 African countries as high-risk in new travel advisory

Canada invites 1,000 candidates to apply for permanent residence

by The Editor
August 20 2026
0

...

Trump threatens to bomb Oman

Trump threatens to bomb Oman

by The Editor
August 18 2026
0

...

Putin defies Trump with second nuclear weapons test

Russia summons Japan ambassador over disputed islands row

by The Editor
August 18 2026
0

...

State of the States

Gov. Otu bows to pressure, orders release of detained critic Odama

Gov. Otu bows to pressure, orders release of detained critic Odama

by The Editor
August 20 2026
0

...

2027: Makinde to unveil APM presidential campaign council Friday

Oyo declares Thursday work-free for 2026 Isese day

by The Editor
August 19 2026
0

...

Gov. Adeleke deposes Oba Joseph Oloyede, Apetu of Ipetumodu

Account Freeze: Adeleke orders Osun Attorney-General to withdraw suit against EFCC

by The Editor
August 18 2026
0

...

Lagos leads January 2026 FAAC allocations with N55.83bn

Sanwo-Olu inducts 1,000 as Lagos internship beneficiaries hit 8,000

by The Editor
August 13 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Pres. Tinubu swears in two new ministers

Tinubu orders arrest, suspends three perm secs as ICPC uncovers new fake agency

August 21 2026
Lives of All Nigerians Carry Equal Value: ICADAR responds to Senate, House calls for reconsideration of Police withdrawal from VIPs

Northern senators renew call for state police

August 21 2026
Afenifere denies endorsing Buhari’s re-election

Afenifere raises alarm over attacks on farmers in South-West

August 21 2026
Police rescue 75 kidnapped travellers in Kaduna

Police rescue 75 kidnapped travellers in Kaduna

August 21 2026

EDITORIAL REVIEW

BREAKING: Kidnapped Oyo pupils, teachers regain freedom

Terror victims deserve care – Punch

by The Editor
August 21 2026
0

Unfilled tertiary education spaces debacle – Punch

Unfilled tertiary education spaces debacle – Punch

by The Editor
August 20 2026
0

Reps in rowdy session over motion to summon Tinubu

Accounting for recovered assets – Punch

by The Editor
August 18 2026
0

Stop recruiting youths for election violence – Punch

Stop recruiting youths for election violence – Punch

by The Editor
August 12 2026
0

‘Fake’ Agency: Adeyemi insists DG appointment genuine

Country of ghost workers, ghost MDAs – Punch

by The Editor
August 11 2026
0

Opinion

How Adeleke danced back from the dead

How Adeleke danced back from the dead

by The Editor
August 19 2026
0

...

Adeleke’s win and the cost of winning at all costs

Adeleke’s win and the cost of winning at all costs

by The Editor
August 18 2026
0

...

Airtime credit dispute and need for clarity

Airtime credit dispute and need for clarity

by The Editor
August 5 2026
0

...

Tinubu swears in four Permanent Secretaries, INEC commissioner

Tinubu: The Audacity to Hope – Three years after

by The Editor
July 31 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.