New electricity price regime takes effect from Wednesday
A WAVE of opposition at the weekend greeted the 100 per cent electricity tariff increase, which takes effect from Wednesday.
Minister of Power Sale Mamman on June 15 said Nigerians would pay higher electricity tariff from July 1.
He told the Senate power panel: “It is really our only choice to once and for all resolve the long standing issue of the power sector.”
The increase in tariff will not bring about more efficient power supply, the Electricity Distributions Companies (DisCos) warned last night.
The DisCos, through their umbrella body, Association of Nigerian Electricity Distributors (ANED), said implementing the new price regime would be no magic wand.
ANED Executive Director (Research and Advocacy), Sunday Oduntan, who spoke with The Nation on telephone said: “There will be change compared to five years ago. But don’t expect 24 hours of electricity. “
Ahead of the commencement of the new rate, private operators under the Organised Private Sector in Nigeria (OPSN), said any tariff hike in the face of inadequate electricity supply will worsen the cost of production and result in job losses.
The OPSN said at the moment, electricity outages average about 10 hours per day; with the cost of self-generated electricity averaging N119 billion in 2019.
OPSN comprises the Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Employers Consultative Association (NECA), Nigerian Association of Small and Medium Enterprises (NASME) and the Nigerian Association of Small Scale Industrialists (NASSI).
The Lagos Chamber of Commerce and Industry (LCCI) Director-General, Dr Muda Yusuf, said the power sector reform has not delivered the desired outcomes.
He said there was a need for a holistic approach to the issue of power.
Source: The Nation