A wave of opposition at the weekend greeted the 100 per cent electricity tariff increase, which takes effect from Wednesday, July 1st.
Minister of Power Sale Mamman on June 15 said Nigerians would pay higher electricity tariff from July 1.
He told the Senate power panel: “It is really our only choice to once and for all resolve the long-standing issue of the power sector.”
The increase in tariff will not bring about the more efficient power supply, the Electricity Distributions Companies (DisCos) warned last night.
The DisCos, through their umbrella body, Association of Nigerian Electricity Distributors (ANED), said implementing the new price regime would be no magic wand.
ANED Executive Director (Research and Advocacy), Sunday Oduntan, who spoke on the telephone said: “There will be change compared to five years ago. But don’t expect 24 hours of electricity. “
Asked what would be the implication of the new tariff, he said: “There is no increase in generation. Have you heard of an increase in transmission? These are the issues. There is a need for realignment.
Private operators under the umbrella association, the Organised Private Sector in Nigeria (OPSN), are opposed to the proposed increase in electricity tariff from Wednesday.
According to the group, the upward review of the tariff will be counterproductive on consumption and productivity. They argued that any form of an increase in electricity tariff in the face of inadequate electricity supply and the exorbitant cost of self-generated electricity will further spike the cost of doing business with consequential upward spiral effects on the unemployment rate.
The OPSN said at the moment, electricity outages average about 10 hours per day; electricity expenses still constitute about 40 per cent of the total cost of production, with the cost of self-generated electricity averaging N119 billion in 2019.
It would be imperative to note at this point, two salient points stated above-
– The increase in tariff will NOT bring about more efficient power supply
– The upward review of tariff WILL be counter-productive on consumption and productivity.
If the increase doesn’t guarantee efficient or stable power, why the increase then? This simply means that people will be paying more for what they are not using.
More so, producers of commodities will increase the cost of their commodities, and who bears the pain, the end Users, people buying and using the product already.
In light of this, don’t you think it’s high time, we all started using solar electricity in Nigeria?
Imagine you being in charge of your own electricity bill. That way you don’t have to pay more and yes you will be guaranteed 24-7 power.
Companies who use big capacity of electricity can also invest in Beebeejump electricity, as they have an EPC department that can build what batteries and Inverters according to what they want to use in terms of electricity.
Why pay more, and get less while you can get a guaranteed source for electricity for far less than what you will spend on the other source of electricity.
Information from the Nation Newspaper was used in preparing this report