Expert says its illegal for Nigerians to pay for electricity

Speaking on Channels Television’s Sunrise
Daily, Mr Yemi Oke warned that the issue of
tariff is a very sensitive one and must be
carefully handled.
Recently, the Minister of Power, Works and
Housing, Mr Babatunde Fashola, had said
that electricity consumers in Nigeria may
have to gear up to pay higher tariffs to
enjoy constant power supply.
Mr Oke, while stating that tariff must be
seen as “paying for the power consumed”,
explained that “Tariff is purely a legal issue
because it is regulated (and this) is far
different from a policy issue.”
Tariff Methodology.
Mr Oke acknowledged the progress made
so far by the Ministry of Power, adding that
the Minister has hit the ground running in
terms of having a clear understanding of the
problems in the sector.
According to the energy expert, what Mr
Fashola said borders on the tariff
methodology.
“Tariff methodology simply means the basis
for agreeing what is to be charged to
consumers.
“The principle says that you must
encourage DISCOs to charge enough tariff
to be able to equip their investment with
reasonable yield.
“It also says that the methodology should
aim at facing off any form of production
subsidy,” he said.
Mr Oke also gave his recommendation
on the development of an effective tariff
system.
“The tariff structure we have now is not
likely going to work because it targets
production. That is why some of us will
prefer a kind of feeding tariff structure that
targets consumption,” he said.
“We have to start reworking the tariff
methodology to reflect actual consumption
as against production.
“We need to accelerate the rate of metering
which is easier to get people to pay actual
values for power.
“But to jack up tariffs on estimated billings
without supplying power to Nigerians will be
problematic (and this) is a recipe for crisis.”
The Minister of Power, Works and Housing,
Mr Babatunde Fashola had recently said
that a tariff system which allows consumers
of electricity to pay for only what they
consume is a sure way to having stable
electricity supply in Nigeria.
At a media conference in Abuja where
he informed the media about his blueprints
for handling issues in the three ministries
he oversees, he emphasized his
determination to implement an effective
market tariff system for the power sector.