NERC Holds First Electricity Consumer Forum
27.02.15 - 06
The Nigerian Electricity Regulatory Commission (NERC) recently held its maiden national public consultation with electricity consumers comprising households, manufacturers, investors and other stakeholders towards bringing Nigerians abreast with the activities of the Commission regarding tariff setting.
This is even as electricity customers have called on the Commission to monitor the activities of industry operators with regard to the billing of power consumed.
The consultative forum is part of NERCs regulatory mandate under the Electric Power Sector Reform Act (2005) to address concerns raised by electricity customers.During the last review of the Multi-Year Tariff Order (MYTO) 2.1, which came into effect on 1ST January, 2015, residential customers are exempted from the upward review for a period of six months, which will lapse in June, 2015.
The consultation gave an opportunity for all stakeholders and the Commission to share ideas on how to combat inadequacy in the power sector and also discuss the way forward. In his paper presentation entitled Seeking Innovative Solutions to Rising Energy Cost in Nigeria The Chairman of NERC, Dr Sam Amadi noted the concerns of utilities, the industrial and commercial customers on the quality of service and pricing of electricity in the light of shortage of supply of electricity and indicated that NERC is poised to change the structure of the industry to ensure sustainable electricity to businesses and homes.
He said We are convinced that getting the tariff right structure right in this market is a critical component of series of actions that are required to fix the electricity industry in Nigeria.He further explained that the design of the tariff regime is based on the twin principles of allowing recovery of prudent cost incurred by an efficient operator, while ensuring customers pay only fair and reasonable tariff.
On claim that tariff is reviewed arbitrarily without recourse to consultation with stakeholders, Amadi explained that on the contrary customers are not very motivated to attend forums where issues affecting their interest are discussed, including making decisions on tariff review. He urged for change in attitude from stakeholders by honoring invitations from the Commission to attend public consultation and hearings being organized by the Commission.
He said that the Commission recognizes its responsibility to ensure adequate and reliable electricity and will continue to organise forums that would pave way for the voice of electricity consumers to be heard; especially industrial and commercial consumers on tariff setting and other activities of the Commission.
Dr. Usman Abba Arabi - Head, Public Affairs Department
Email: uabbaarabi@nercng.org
mfaloseyi@nercng.org
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