Tag electricity tariff why we reject court order nerc
A very specific and technical question!
Here's a breakdown of the issue:
Tag electricity tariff: In Nigeria, the electricity tariff is the rate at which electricity is sold to consumers by the electricity distribution companies (DISCOs). The tariff is regulated by the Nigerian Electricity Regulatory Commission (NERC).
Why we reject court order NERC: In 2020, the Nigerian Electricity Regulatory Commission (NERC) issued a court order to increase the electricity tariff for consumers. However, the order was rejected by many Nigerians, including the DISCOs, due to several reasons:
- Lack of transparency: The tariff increase was not transparent, as the calculation methodology was not made public. Consumers were not aware of how their tariffs were being calculated, leading to mistrust.
- Inadequate consultation: The NERC did not adequately consult with stakeholders, including consumers, before issuing the order. This led to feelings of exclusion and lack of representation.
- Unjustified increase: The tariff increase was seen as unjustified, as it did not reflect the actual cost of providing electricity services. Many consumers felt that the increase was excessive and would lead to further hardship.
- Lack of infrastructure development: The tariff increase was not accompanied by any significant investment in infrastructure development, such as the upgrade of power generation and transmission facilities. This led to concerns that the increase would not lead to improved service delivery.
- Alternative solutions not explored: The NERC did not explore alternative solutions, such as reducing non-technical losses or increasing efficiency in the distribution network, before increasing the tariff.
As a result, many Nigerians, including the DISCOs, rejected the court order and called for a review of the tariff increase. The controversy surrounding the tariff increase has led to ongoing debates and discussions about the best way to regulate the electricity sector in Nigeria.