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Confusion over NERC’s stance that no steady power supply unless tariff rises

More Nigerians are still raising their voices over the recent claims by the Acting Chairman/Chief Executive of Nigerian Electricity Regulatory Commission (NERC), Dr. Tony Akah who averred that without an increase in electricity tariff payable by consumers or an intervention in form of subsidy from the Federal Government to the power firms, the country would not be able to get the steady power supply.

Dr. Tarfa Ibrahim, a power consultant told Business Hilights that “The power generating companies popularly called gencos are yet to tell Nigerians the exact amount they have truly invested since they won the bids”.

“It worries me when Gencos tell Nigerians that they must pay more to get steady light when the actual amount of fund you signed on winning the bid to invest is not there more than four years after.

According to him, government should audit the level of investments so far made by all the investors in power sector to find out who is fouling who because if you sign to invest a particular amount so that you can win the job, after some time, the mater must investigate to find pout whether you complied.

Apart from Dr. Ibrahim’s position, even the comment was roundly rejected by members of the Senate Committee on Privatisation, who were at the commission’s headquarters  in Abuja on an oversight visit.

The committee also called for the issuance of licences to more power investors in order to break the monopoly of the current operators, and insisted that the government should not provide any form of subsidy to the sector.

Earlier in his presentation to the committee, the Acting Chairman/Chief Executive of NERC, Dr. Tony Akah, said there was no miracle that the commission could do to ensure steady power supply, stressing that this was particularly due to the liquidity problem in the sector.

While keeping mute on the level investments by power generators, he said to address the financial shortfall, a cost-reflective tariff or subsidy must be provided for operators in the power business.