Electricity Tariff Hike: FG acting Bretton Woods' script, says Falana

• NERC announces new prices for single, three phase meters

Tayo Busayo, Abuja 

DAILY COURIER - Human rights lawyer, Femi Falana, has accused the Federal Government of pandering to the whims and caprices of the International Monetary Fund (IMF) and the World Bank following a hike in electricity tariff. 

Falana claimed that the move is a policy imposed on the Nigerian government by the Bretton Wood institutions.

“The Honourable Minister of Power is acting the script of the IMF and the World Bank,” Falana said on Channels Television’s program on Monday.

“Those two agencies insisted and they continue to insist that the government of Nigeria must remove all subsidies. Fuel subsidy, electricity subsidy and what have you; all social services must be commercialised and priced beyond the reach of the majority of Nigerians.

“So, the government cannot afford to protect the interest of Nigerians where you are implementing the neoliberal policies of the Bretton Wood institutions.”

The Senior Advocate of Nigeria accused Western countries led by the United States of America of double standards. According to him, they subsidize agriculture, energy, and fuel and offer grants and loans to indigent students while they advise the Nigerian government against doing the same for its citizens.

Tariff hike not justified

Following the outrage that greeted the announcement of the tariff increase, the Minister of Power, Adebayo Adelabu, explained that the action would not affect everyone using electricity as only Band A customers who get about 20 hours of electricity are affected by the hike.

Falana, however, insisted that neither the minister nor the National Electricity Regulatory Commission (NERC) has justified the tariff increase.

The senior lawyer said that Nigerian law gives no room for discrimination against customers by grading them in different bands.

He insisted that the government cannot ask Nigerians to pay differently for the same product even when what has been consistently served to them is darkness.

Following the outrage over the hike, Adelabu on Monday appeared at a one-day investigative hearing on the need to halt the increase in electricity tariff by eleven successor electricity distribution companies amid the biting economic situation in Nigeria.

However, Falana said that nothing will come out of the probe by the Senate. He believes the matter has to be taken to court so that the minister and the Attorney General of the Federation can defend the move.

NERC announces new prices for single, three phase meters

The Nigerian Electricity Regulatory Commission (NERC) has adjusted the price of a single phase meter from N58,661.69 to N81,975.16.

It also adjusted the price of three phase meter from N109,684.36 to N143,836.10.

The adjustments were contained in the ORDER NO: NERC/2024/040 that the commission’s Chairman, Engr. Sanusi Garba and Commissioner Legal and Licensing Compliance, Barrister Dafe Akpeneye issued on Monday

The title of the order is “The deregulation of meter prices for meters deployed under the Meter Asset Provider Scheme.”

The Chairman and Commissioner said the Meter Asset Provider and National Mass Metering Regulations (the “Regulations”) provide for the metering of end-use customers of successor electricity distribution licensees (“DisCos”). Section 8(1 )(c) of the Regulations provides that “the cost of single phase and three phase meters for MAPs, inclusive of all other associated costs of installation and warranties shall continue to be at the regulated rates approved by the Commission”.

NERC said the Meter Asset Providers (MAPs) and Local Meter Manufacturers Associations (LMMAs) have requested a further review of meter prices in consideration of significant changes in NGN/USD foreign exchange rate and

inflation rate since the last price review in September 2023 and the significant changes in these macroeconomic variables has constrained their ability to supply meters at the approved regulated price.

Garba and Akpeneye said the commission has noted the need for the efficient pricing of meters to respond more quickly to changes in macroeconomic parameters, particularly exchange rates. 

According to them: “The Commission has further taken cognisance of the

constraints/challenges faced by MAPs and LMMAs and therefore approved

the deregulation of prices of meters deployed under the MAP scheme without a tariff increase, Nigeria will need N3.2 trillion to subsidise electricity in 2024, says NERC

NERC cedes regulatory power to Ekiti Bureau effect from 1 May 2024.”

NERC said, “the commission hereby orders: with effect from 1 May 2024, all prices of meters under the MAP scheme shall be determined through a competitive bidding process with customers provided with a choice of authorised vendors.

“The combined effects of sections 8(1 )(c), 8(1 )(d), 16(1 )(h), 31 and 32(1 )(b) of the Regulations on the regulated pricing of meters deployed under the MAP scheme is hereby derogated.

“The cost of prices of meters deployed under the MAP scheme is HEREBY

DEREGULATED to enable end use customers acquire meters from MAPs.”

NERC noted that the choice is based on competitive open market prices determined from transparent bidding frameworks.

The order noted that all MAP permits holders are henceforth eligible to provide services and transact for the provision of meters and metering services with any DisCo in the Federal Republic of Nigeria with their existing permit. 

According to the commission, the lifting of the restriction on permitting to operate in all DisCos is subject to the mandatory requirement for MAPs to comply with the associated DisCo specific requirements/specifications.

The commission added that all DisCos shall ensure the effective and seamless integration of smart meters

deployed by MAPs with the DisCo’s head-end systems and meter data management systems.

It further noted that all DisCos shall provide a publicly accessible online portal on their website where prospective MAPs can view the DisCo’s technical specifications and commercial terms for participation as a MAP within its network area.

Garba and Akpeneye said all DisCos are required to conduct a thorough test and confirmation of specifications for new meters proposed by a prospective MAP and concluded no later than 20 working days from the date the proposed MAP fulfils all the requirements specified on the online portal to participate within its network area. 

Due to the worsening power issue across the country, Nigerians are calling for the sack or redeployment of the minister of power, Adebayo Adelabu. His stint in the power house has exacerbated the already bad power situation Henry, a Nigerian who spoke to our Correspondent said. Jane who manages a salon in Kubwa said Adelabu's time is an era of paying for darkness in Nigeria.