ELECTRICITY: LCCI Kicks Against Upward Review of Tariff

The Lagos Chamber of Commerce and Industry (LCCI) has kicked against the proposed  increase in electricity tarrif.

In a statement signed by the President of the Chamber, Otunba Femi Deru, the LCCI  noted that the undue emphasis on electricity pricing is the principal consideration  in the power sector reform.

Otunba Deru stated that over the last three years, there have been different upward  reviews in electricity tariff which has not ushered in any discernible addition to  consumer value.

“If anything, the power supply situation has deteriorated over time. Load shedding  and outright blackout have been the order of the day. The Multi Year Tariff Order  (MYTO) introduced in 2008 to moderate electricity tariff, apparently has  sustainability problems, and is therefore being reviewed. We disagree with this  position,” Deru said.

He said the point to stress here is that reforming the power sector is not just  about increasing electricity tariff. According to him, lately there have been  pronouncements on tariff review which are not only incoherent, but also conflicting  and misleading. These pronouncements have come from the Presidential Task Force on  Power (PTFP) and the Nigerian Electricity Regulatory Commission (NERC).

“Few weeks ago, the nation was informed of a proposal to review electricity tariffs  by 30 per cent. Shortly after, there was another statement on purported reduction in  tariff based on the ‘real cost theory’. The latter involved a benchmarking of the  proposed tariff against the current cost of electricity generation by firms and  individuals, using diesel, petrol and LPFO. The NERC has since dissociated itself  from the proposal.”

“Nonetheless, we affirm that electricity generation by individuals and firms is  merely a way of coping with a crisis created by the failure of governance, not a  structured electricity generation enterprise. If there is any evidence of leadership  failure in Nigeria  it is the embarrassing state of the public power supply. It is,  therefore, misleading to benchmark electricity tariff with these costs for the  purpose of justifying a tariff review. This analysis is

  Copyright protected by Digiprove © 2011 P.M.News