Nigeria: DisCos Defend the New Electricity Tariffs

Local media reported that the discos said this through a statement provided by their representing union, the Association of Nigerian Electricity Distributors (ANED).

Earlier this month, Nigerians saw an increase in power rates, of which the nation did not find agreeable, leading to nationwide protests by consumers and businesses alike.

As the discos are refusing to revise the electricity tariffs, this is in response to a recent order from the Senate that supports the customers’ protests.

The union stated that among the crippling of the economy, if the electricity tariffs were to be suspended, the whole country would also be left in darkness.

“Fellow Nigerians, suspending the implementation of the new tariffs will leave us in continuous darkness, with diminished and no future prospects of growth of our economy,” ANED said.

ANED’s executive director for advocacy and research, Sunday Oduntan, said in a statement: “The Senate on Tuesday, 16 February 2016 passed a resolution directing the Nigeria Electricity Regulatory Commission (NERC) to suspend the recently-implemented electricity tariff (MYTO-2015).

“However, implementation of this resolution is not without consequences and the following are a few of them. A market priced tariff is a fundamental requirement under the agreements signed between distribution company (disco) operators in the Nigerian Electricity Supply Industry (NESI) and the Bureau for Public Enterprises (BPE), raising the concern for sanctity of contract.

“Such a failure will be at a price that the government can ill-afford in these times of dire economic challenges.” The statement further outlined that the effects of the suspension would also result in job losses.

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