Memorandum Submitted By the NBA SPIDEL to NERC in Opposition to the Electricity Tariff Increment By the 11 DISCOs

“MAKE NO MISTAKE: WE ALL ARE AFFECTED”

The NBA SPIDEL is the public interest section/arm of the NBA and we are Citizens of Nigeria and Consumers across the Nigeria nation affected by the increment in electricity tariff, lack of electric Meters, and epileptic electricity supply.

It is apt to note that the intent of Makers of the Law is that increment in Electricity Tariff should not be automatic and should be considerate in light of the economic realities hence it creates the room for objections/observations which should consequently make the regulatory body the Nigerian Electricity Regulatory Commission (NERC) refuse the proposed increment of electricity tariff. This is so important that same provision was retained in the new Electricity Act 2023 (Section 116).

Suffice to say that the fact that the 11 DISCOs have applied for increment is not automatic for the regulator NERC to grant all their applications for increment. Accordingly, we concerned Nigerians and consumers through the auspices of the NBA SPIDEL say no to the proposed increment on the following grounds:

1. The increment is ill-timed as there is so much economical hardship in the nation right now caused by several economic indicators including the removal of fuel subsidy that even the rich is struggling to survive how much more the common man. The current electricity cap is so unrealistic that the minimum wage earner cannot pay same.
2. The electricity supply is still being subsidized by the government.
3. Lack of quality Meters, and lack of Meter reading for billing.
4. Continuous and blatant breach of NERC Regulations by DISCOs without appropriate sanctions.
5. Lack of enforcement of NERC rulings against DISCOs.
6. No evidence of payment of fines by DISCOs to NERC, and ought not these fines to be used for the benefit of the consumers who are the victims.
7. No adequate compensation for consumers who are victims of DISCO breaches.
8. No proof of capital investments by DISCOs in the electricity Network as Consumers are forced to purchase Meters, Transformers, Wires, and forced to donate them to DISCOs, and forced to pay for the installation of the same.
9. Why is energy still being purchased by DISCOs from GENCOs in US dollars when both companies are all Nigerian based?
10. Why are thugs used by DISCOs in collecting due tariffs, and why are qualified Nigerians not been employed?
11. Why are most of the staff of DISCOs still contract or casual staff?
12. Electricity supply is so epileptic, unpredictable, and hence cannot be relied upon for both domestic and business purposes.
13. Why is there discrimination in the tariff being billed by the DISCOs in violation of fundamental rights?
14. What efforts, and steps are being taken to reduce electricity theft which is on the increase?
15. Why is there still monopoly in the electricity distribution by the DISCOs?

The operative word to be considered before increment can be allowed is contained in Section 116 (2) (a) allow a licensee that operates “efficiently”……..

Which of the DISCOs can claim to be operating efficiently? Certainly none is efficient.

Make no mistake we are all affected; even the rich also cry. The continuous demand for assistance from friends, relatives, and strangers has now reached an alarming crescendo, and except we are very careful we are at the verge of a violent revolution which would be triggered by the actions and inactions of an insensitive government or government’s insensitivity to the plight of her citizens. Note, if there is a breakdown of law and order as a result of these insensitive actions; even the DISCOs would no longer exist to recoup their investments. Hence, it is better to create a sane society, where the DISCOs will keep operating, and gradually recouping their profits and investments.

NBA SPIDEL is not just a body that criticizes but as a Reformer is ready to partner with the Commission (NERC), the DISCOs and GENCOs in finding lasting solutions as it is her mandate to also use the Law as a tool of social engineering to develop solutions. Hence, we humbly in line with the Freedom of Information Act request the following to be disclosed to NBA SPIDEL in a letter at least two weeks before the public hearing in respect of this proposed tariff increment:

1. All the approved tariffs and increments of the tariffs by the DISCOs and GENCOs by NERC from inception till date.
2. All subsidies paid by the Government and Donor Agencies for each DISCOs and GENCOs from inception till date.
3. All licensing fees and all other fees paid by each DISCOs from inception till date.
4. All the yearly Statement of Accounts of each DISCOs from inception till date.
5. The Assets of the defunct PHCN handed over to each DISCOs from inception till date.
6. The amount spent on electricity energy purchased by each DISCOs from GENCOs and their respective tariffs from inception till date.
7. The Penalties and Fines imposed on each DISCOs and GENCOs and whether they complied and what the funds were used for from inception till date.
8. Yearly compliance graph/indices/data of all the DISCOs and GENCOs with NERC regulations from inception till date.

In the hope that this memorandum will receive favourable consideration, please, accept the assurances of our highest esteem.

Dated this 19^th day of July, 2023.

Yours faithfully,

 

………………………

John Aikpokpo-Martins,

Chairman.