And the Desperation continues
I have just heard with that the Federal Government
has reduced electricity tariff by 50%. Great! Much as
this reduction is a welcome development, it has however
left me wondering about some things.
First, I remember that two months ago, specifically in
January this year, the same government increased the
same tariff. The increase was greeted with a nationwide
outcry which prompted the government to give a six
months moratorium to residential consumers. It
however refused to do same for commercial consumers.
Commercial consumers were thus forced to pay the new
tariff with effect from 1st January 2015 despite the wide
outcry about epileptic power supply.
Now my question is what has changed between January
and now to warrant a review, reversal and reduction of
the new tariff regime? Has technical cost of the discos
reduced? Has the Discos accessed more funds through
the credit line guaranteed them by the FGN? As I type
this, the story I read is that the banks through which
the loans would be accessed are still conferring with
government and loans not yet disbursed to the Discos.
So my question is if government did its home work
thoroughly before announcing the increase in January
against resistance from Nigerians, why is it now
reversing itself? Is it now admitting that the increase
was unwarranted in the first place, or is it because of
the coming election?
The second thing that left me wondering is that we had
been told that PHCN had been unbundled and
privatized, thus resulting in the various power Discos
and Gencos. The little I know about privatization is that
government cedes ownership and control of public
enterprises. The privatized enterprises thus become
profit oriented organisations free to determine their
prizes through market forces. On account of national
interest however, deregulation of critical sectors like the
power sector is done in such a way that there is a
"guiding hand" who puts in place a tariff band - a sort
of minimum-maximum tariff chargeable to guarantee
profitability and sustainability as well as affordability by
the people. Within this tariff band, the discos are free to
fix their prices. If that is the case, I am now wondering
what informed this fiat reduction by government. Were
the discos consulted? Did the government carry them
along?
It is not that I do not like paying lower tariffs or that I
like to continue paying high on electricity, which I do not
get anyway, but am just worried that this fiat reduction
might worsen the power situation in the country. I hope
the Discos won't begin to complain of lack of
profitability, thus forcing them to engage in favouritism
and sharp practices. Recently, I learnt that it is possible
for one man to bribe his way to corner electricity supply
meant for a whole community. I hope this tariff
reduction won't exacerbate that corrupt practice?
As for the reason for this dubious gift, any discerning
fellow who has witnessed the ongoing desperation and
paranoia of the government, will not fail to concluded
that this tariff reduction is one more desperate measure
in a bid to secure a re-election by President Jonathan
come March 28, 2015. His government will go down in
history as the one government that has done everything
in and out of the books, known and unknown, moral and
immoral in order to secure a re-election. It ought not to
be so if Mr. President had performed in his first term in
office.

This Article was written by Frank Ofili

APC! why don't you see something good in this man once. is your candidate an angel that will change this country more than what this man has done? " you only know the important of light wen its night"

simply because their won't electricity to enjoy the 50% reduction

What is there to see in a man that is misguided and is unsure of his policies

toyonnet:
APC! why don't you see something good in this man once. is your candidate an angel that will change this country more than what this man has done? " you only know the important of light wen its night"

framie05:
simply because their won't electricity to enjoy the 50% reduction

it won't be a problem if Nigerians are getting value for what they are paying for

Is good he asked.

The providers increased tariff for all commercial and corporate consumers by 50% last January.

The companies reported this issue to the regulatory commission including the attendant burden it poses to doing business in Nigeria.

The regulatory commission looked into the matter and invited the service providers on the need to consider the Federal Government drive for industrialization and job creation as to abandon the said increase.

Yesterday, the deal was announced to take effect from March, 2015.

NB: This decision has nothing to do with private consumers.

Ngwakwe:
Is good he asked.

The providers increased tariff for all commercial and corporate consumers by 50% last January.

The companies reported this issue to the regulatory commission including the attendant burden it poses to doing business in Nigeria.

The regulatory commission looked into the matter and invited the service providers on the need to consider the Federal Government drive for industrialization and job creation as to abandon the said increase.

Yesterday, the deal was announced to take effect from March, 2015.

NB: This decision has nothing to do with private consumers.

Thank you for taking the pains to enlighten and educate the uninitiated on this matter, and this includes me.

Though a core GEJ supporter, I saw it as a political calculation, considering the times and seasons.

I think at this point, there is almost nothing GEJ will do that wont be tagged 'political'......All the same, he still needs to go on doing his job....

Ngwakwe:
Is good he asked.

The providers increased tariff for all commercial and corporate consumers by 50% last January.

The companies reported this issue to the regulatory commission including the attendant burden it poses to doing business in Nigeria.

The regulatory commission looked into the matter and invited the service providers on the need to consider the Federal Government drive for industrialization and job creation as to abandon the said increase.

Yesterday, the deal was announced to take effect from March, 2015.

NB: This decision has nothing to do with private consumers.

Are you saying the issues that necessitated the initial increase in January are no longer there?
If they are still there, then what has considerably change to warrant this kind of abrupt reversal? Does it mean that increase was not necessary (exploitative) in the first since they now intend to work with the agreed tariff