NECAN Urges Further Tariff Reduction For Businesses | Independent Newspapers Limited
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NECAN Urges Further Tariff Reduction For Businesses

Posted: Apr 30, 2015 at 2:12 am   /   by   /   comments (0)

By Obas Esiedesa, Abuja


Barely 48 hours after it was set-up, the Nigerian Electricity Consumers Advocacy Network (NECAN), has said it was not in agreement with the yardsticks used by the Nigerian Electricity Regulatory Commission (NERC) in increasing tariff last December.

The network, which was put in place on Monday by NERC to boost consumer power in the electricity market, noted that despite the average 50 percent reduction in tariff for businesses following the removal of collection loss charges, most still pay between 24.5-48 percent more than last year’s tariff.

Interim President of NECAN, Tomi Akingbogun told newsmen in Abuja on Wednesday that as a result of the tariff hike, most businesses and factories have shut down operations.

According to him, “Many businesses are folding and closing down in Nigeria especially because of the new increment in tariff and we are going to challenge NERC as our members are very unhappy even with the so called 50 percent reduction in the hike.

“What happened was that the Discos made a lot of submissions to NERC and resulted in NERC looking into the costing aspect of electricity. We are not in agreement with yardsticks NERC used to come to the increment.

“We had between 25-94 percent increments in electricity tariff which we are taking up with them”.

He explained that the reduction of 50 percent “still leaves you with about 12.5-48 percent increment in electricity tariff depending on the zone which you are served. We believe the reason for the increment is not fair enough for the consumers”.