INVESTIGATION: Beautiful infrastructure but poor staffing, lack of drugs hinder PHC services in Borno communitiesRotimi Sankore, 6 June,1968 – 12 April, 2024, By Chidi Anselm OdinkaluHard hit by climate change, farmers in Nigeria’s ‘food basket’ face new foesINVESTIGATION: Beautiful infrastructure but poor staffing, lack of drugs hinder PHC services in Borno communitiesRotimi Sankore, 6 June,1968 – 12 April, 2024, By Chidi Anselm OdinkaluIt is difficult to guess what was on the mind of the...
Perhaps, in response to the loud complaints that immediately greeted that, the NERC, even after releasing the approved tariffs to the public, backpedalled from letting the approved tariffs take effect in January. Rather, the NERC Chairman stated that the review of the Multi-Year Tariff Order in January was just to determine “what the DisCos should have been charging and the subsidies the government will be paying to cover the gap”.
One of the things the orders have done, over the years, is to categorise customers per service level from DisCos, classified as clusters or bands, with tariffs pegged to the level of supply, with more hours of supply attracting higher tariffs. Even though it is an arrangement that has been in place since 2008, with MYTO providing for 19 Customer classes and MYTO 2 consolidating that into five classes, with each one further broken down into categories, clusters of bands.
Rather than becoming the elixir privatisation was touted as, it has led the industry into a cul-de-sac, with cost-reflective tariffs being touted as a cure-all, which some argue ignore the fundamental issues that hold the industry down. Every round of increase in tariff only gets to be met with yet another more strident call for further increase, even before one MYTO has run its full course.
Unlike the previous rounds of hike in end-user tariffs by the Nigerian Electricity Regulatory Commission , this one throws up quite a few questions. Why did NERC declare a uniform tariff for all the 11 Distribution companies, whereas the DiScos have always had different tariffs, as the cost component for each is not only different, but their proposed tariffs are also never the same? In the current round, Ikeja Electric proposed N166.9/kWh, with N119.
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