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Continuous suspension of tariff affects electricity pricing
- Tariff increment a necessary factor for sector viability
- Timing of tariff increments could be reconsidered
The Chief Executive Officer (CEO), Century Power Generation Limited, Dr. Chukwueloka Umeh has faulted the suspension of the recent tariff increment by the Minister of Power, Sale Mamman. He says the Nigerian Electricity Regulatory Commission’s failure to adhere to the provisions of the Multi-Year Tariff Order (MYTO) on steady tariff increments is negatively impacting the sector and consumers.
Dr. Umeh said the tariff increments are necessary for a viable and functional electricity sector, however, the timings of the increments could have been considered. He faulted the timing of the increments saying that NERC could have given more thought to the current economic situation in the country. Speaking further, he said the government’s focus should be on policy formulation and creating a conducive environment for investments.
According to Dr. Umeh, the private sector should be allowed to drive competition in the electricity sector. He acknowledged that most Nigerians, including government officials, are oblivious to how the electricity sector’s value chain functions, and without this knowledge of the sector and its value chain, there will be a continuous opposition to tariff increments. Sadly, the impact of this will be an underperforming sector.