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

Senate to consider six-year single term for president, governors

June 9 2026
Protesters march to National Assembly over worsening insecurity
Headlines

Protesters march to National Assembly over worsening insecurity

June 9 2026
NLC, TUC threaten nationwide strike over insecurity
Headlines

NLC, TUC threaten nationwide strike over insecurity

June 8 2026
Oyo: Kidnappers want colleagues released; not N1bn, Sharia – Abducted principal
Headlines

Oyo: Kidnappers want colleagues released; not N1bn, Sharia – Abducted principal

June 8 2026
Tinubu appoints NECO, NBTE chairmen, names poly rector, renews library DG tenure
Headlines

Insecurity: We won’t bow to terrorists’ intimidation – Tinubu vows

June 8 2026
Military rescues 360 Ngoshe abductees in Borno
Headlines

Military rescues 360 Ngoshe abductees in Borno

June 8 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

His Royal Majesty, Obi Ifechukwude Okonjo II: Progressive Monarch fighting for his people

His Royal Majesty, Obi Ifechukwude Okonjo II: Progressive Monarch fighting for his people

by The Editor
June 4 2026
0

...

Ondo LG shuts schools over security concerns

Ondo LG shuts schools over security concerns

by The Editor
June 2 2026
0

...

IPOB hails observance of Biafra Heroes Remembrance Day

IPOB hails observance of Biafra Heroes Remembrance Day

by The Editor
May 31 2026
0

...

Alaafin urges FG to strengthen native intelligence after Oyo school attacks

Alaafin urges FG to strengthen native intelligence after Oyo school attacks

by The Editor
May 17 2026
0

...

APPOINTMENTS

NCC appoints Princess Oforitsenere Emiko as interim Chairman of the Digital Bridge Institute Governing Board

NCC appoints Princess Oforitsenere Emiko as interim Chairman of the Digital Bridge Institute Governing Board

by The Editor
June 9 2026
0

...

Pres. Tinubu swears in two new ministers

Pres. Tinubu swears in two new ministers

by The Editor
June 8 2026
0

...

Tinubu appoints Zainab Marwa into NDDC Board

Tinubu appoints Zainab Marwa into NDDC Board

by The Editor
June 4 2026
0

...

Botswana appoints Nigerian Adesina as Chair of Diamonds for Development Fund

Botswana appoints Nigerian Adesina as Chair of Diamonds for Development Fund

by The Editor
June 3 2026
0

...

ODDITIES

Bus driver stabs transport officer to death in Calabar

Lady lures friend for boyfriend to kill, harvests body parts

by The Editor
June 9 2026
0

Oyo residents chant ‘Jagaban 2027’ slogan after receiving semovita

Oyo residents chant ‘Jagaban 2027’ slogan after receiving semovita

by The Editor
June 9 2026
0

Ibadan visitation: Nobody can stop me from going anywhere in Nigeria – Sheikh Gumi

Ibadan visitation: Nobody can stop me from going anywhere in Nigeria – Sheikh Gumi

by The Editor
June 9 2026
0

GLOBAL NEWS

Trump urges Israel, Iran to cease fire after fresh attacks

Trump urges Israel, Iran to cease fire after fresh attacks

by The Editor
June 8 2026
0

...

UK gives Apple, Google deadline on child safety, nude image filters

UK gives Apple, Google deadline on child safety, nude image filters

by The Editor
June 8 2026
0

...

Iran dismisses idea of Trump meeting supreme leader

Iran dismisses idea of Trump meeting supreme leader

by The Editor
June 5 2026
0

...

UN raises concern over renewed xenophobic attacks in South Africa

FG to repatriate over 1,000 Nigerians from South Africa

by The Editor
June 5 2026
0

...

Iran hits US Fifth Fleet HQ, airbase after violations near Strait of Hormuz

Iran hits US Fifth Fleet HQ, airbase after violations near Strait of Hormuz

by The Editor
June 3 2026
0

...

State of the States

Gov. Uzodimma declares Imo as haven for local, foreign investors

Gov. Uzodimma declares Imo as haven for local, foreign investors

by The Editor
June 9 2026
0

...

4,000 applicants jostle for 550 nursing, midwifery jobs in Taraba

4,000 applicants jostle for 550 nursing, midwifery jobs in Taraba

by The Editor
June 9 2026
0

...

Ondo commences 2025 OSOPADEC scholarship, bursary for students

Ondo governor enrols pensioners into free health insurance scheme

by The Editor
June 8 2026
0

...

Oyo govt demolishes house linked to Adelabu family kidnap case

Oyo govt demolishes house linked to Adelabu family kidnap case

by The Editor
June 8 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Bus driver stabs transport officer to death in Calabar

Lady lures friend for boyfriend to kill, harvests body parts

June 9 2026
Nigeria assesses risk as Ebola kills three in Guinea

Tinubu approves N10bn emergency funding for Ebola response

June 9 2026
IMF warns Nigeria as Tinubu plans to borrow $5 billion from UAE lender

IMF warns Nigeria as Tinubu plans to borrow $5 billion from UAE lender

June 9 2026
Senate moves to ban textile imports, targets local industry revival

Senate moves to ban textile imports, targets local industry revival

June 9 2026

EDITORIAL REVIEW

Violence deepens, Tinubu must act – Punch

by The Editor
June 9 2026
0

Nigerian workers deserve a living wage – Punch

Nigerian workers deserve a living wage – Punch

by The Editor
June 8 2026
0

Gospel Kinanee’s 18-year ordeal: Fix this broken justice system – Punch

Gospel Kinanee’s 18-year ordeal: Fix this broken justice system – Punch

by The Editor
June 7 2026
0

Bandits attack mosque, kill 1, abduct 9 in Kaduna

Beyond Fulani militants’ menace – Punch

by The Editor
June 5 2026
0

Cooking gas price hike deepens Nigerians’ woes – Punch

Cooking gas price hike deepens Nigerians’ woes – Punch

by The Editor
June 3 2026
0

Opinion

Bandits attack mosque, kill 1, abduct 9 in Kaduna

When terrorism becomes the talk of town

by The Editor
June 9 2026
0

...

Of bandits and their informants/sponsors

Of bandits and their informants/sponsors

by The Editor
June 1 2026
0

...

Nigeria at critical juncture – Vanguard

Nigerian economy: The street is not smiling!

by The Editor
June 1 2026
0

...

Tinubu sticking to anti-masses policy, says Afenifere

As criminals seize Nigerian babies

by The Editor
May 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.