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Power Sector Experts Flay NERC’s New Electricity Tariff Directive

Some experts in Nigeria’s power sector have censured the Nigerian Electricity Regulatory Commission’s (NERC) directive that Distribution Companies (DISCOs) would now fix their tariffs.

According to them, the directive could cause chaos because the DISCOs would over bill consumers who had no choice.

The Chairman of NERC, Sam Amadi, had earlier in the week said that DISCOs could now fix their tariffs in consultation with consumers, which would be subjected to approval by the commission.

The NERC Boss said this in Abuja at the end of the monthly meeting with the power generation firms and the Transmission Company of Nigeria (TCN).

He said the new directive was due to the different operating cost of the DISCOs.Mr Adekunle Makinde, immediate past President, Nigerian Institution of Electrical Electronics Engineers (NIEEE), said that NERC was deviating from its duty as a regulator.

However one of the experts said: “NERC is not doing its work of regulating the electricity tariff; instead, it is giving investors free hands to exploit Nigerians and this can lead to disorder in the sector.”

“Presently, consumers are complaining that the present tariff structure is unacceptable. It will be wrong if NERC gives one of its functions to the DISCOs. These are investors who will not stop at making profit. The directive will definitely result to anarchy because the DISCOs will want something that will be favourable to them while consumers will not want to be cheated,”

Speaking in the same vein, Yomi kolawole, Chairman, Topean Energy Solution, Ikeja, Lagos, said that it was not possible for DISCOs to consult consumers before fixing tariffs because it would not work.

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