7 July 2008
editorial
Lagos — If there is one desire Nigerians want the Yar'Adua-led government to urgently tackle, it is the issue of regular electricity supply in the country. For months now, the total megawatts available for the entire country have been hovering just about 1,000 Mega watts. This, to say the least, is dismal. That it has brought the economic sector of the nation to her knees is an understatement. The burning expectation therefore, from Nigerians, is how very quickly, the government can spare us this prolonged plague.
For most Nigerians however, fixing the electricity problem is best addressed by ensuring improved service delivery, not increase in tariff. It is considered bad enough that hapless consumers are still made to pay electricity bills even when it is darkness, not light, that is beamed to their homes and offices, yet it is worse to now even contemplate increase in the tariff order for a service hardly enjoyed.
But the Federal Government in a good show of understanding of the plight of the masses, has agreed to provide subsidy that will cover the cost of the new charges for the next three years. The new tariff order came into force July 1 this year.
The need for a new tariff order became imperative following the reluctance of core investors to invest in the energy sector. That explains why despite the licensing of over 26 private companies, about two years ago, to generate, distribute and transmit electricity, the situation has remained veritably parlous. Investors are said to have complained that with the current tariff order, which they considered too low, recouping their investment may be a matter of eternity. A reason the Federal Government agreed to the idea of permitting an increase.
Thus, the Multi Year Tariff Order (MYTO), which recommends graduated tariff order spread over years in a manner that consumers do not experience a sharp jump in charges, has been allowed to take effect. With the offer of subsidy by the Federal Government, what it means is that consumers will continue to pay the current tariff for the next three years, while the government pays the difference of what the tariff increase will represent. The idea is that with the subsidy paid, enough investors would have been sufficiently motivated to invest massively in the sector in such a way that within the said period, a remarkable improvement in electricity supply would have been recorded. Towards this end, the government plans to subsidise the tariff with the sum of N77 billion in the first year.
The expectation therefore is that with a stabilized electricity supply within three years, consumers will be more disposed to paying more for the electricity they consume. A development that should also teach Nigerians on how to conserve energy.
No doubt, the reasoning is perfect. What with the provision that even when the consumers begin to pay the new tariff, low income earners and the disabled of the society would enjoy a friendlier rate.
Indeed, we salute the initiative, but the National Electricity Regulatory Commission (NERC), which is driving this new concept must stay focused on the philosophy and understanding behind the new tariff order.
Nigerians are eager to see a steady improvement in the amount of megawatts available for consumption in the nearest future. Agreeing to pay the new tariff will only be welcome when Nigerians experience improved service delivery.
It is also expected that with the new order, investors who had been on the fence all the while, will get into the arena of improving the situation.
The Federal Government on its part must also keep faith with the agreements reached on this matter, as any breach may mean a return to point origin. And this could cost a severe loss of face by Government.
All said, Nigerians need urgent restoration of stable electricity supply. Whatever means lawful through which the government can make this a reality without literally sqeezing Nigerians is welcome and must be given a chance to succeed.
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