- According to the engineers, the demand to raise the electricity tariff was outrageous.
- The NSE identified alternative fuels such as CNG as viable fuel to transition to cleaner energy sources.
The Nigerian Society of Engineers (NSE) has kicked against the proposed increase in electricity tariffs, stating that the demand to raise electricity charges was unjustifiable. During its presentation at the National Electricity Regulatory Commission (NERC) summit to address the issue, the NSE, after carefully reviewing the situation, said that none of the proponents could make a solid case for a tariff increase in all their arguments.
The licensees cited changes in Operating Expenditure (OPEX) as the basis for their request for review, which the engineers debunked. The NSE said that most licensees failed to justify the request due to a lack of evidence of any increase in their circuit length, transformer numbers, staff salaries and numbers, metering and customer numbers. “It was also observed that the Distribution companies (Discos) spend a substantial amount of their approved OPEX for payment of consultancy services and technical partnership payments that do not translate to any operational efficiency,” the engineers noted.
NSE urged NERC to ensure that licensees are given prudent and justifiable cost escalation, as the ‘pass-through’ costs only, adding that they should be mandated to look inwards to reduce their expenses on operational line items.
Regarding the pathway to cleaner fuels, NSE added that using alternative fuels such as Compressed Natural Gas (CNG) holds immense potential as a viable alternative fuel with significant advantages. This is because it is a cleaner burning fuel, emitting lower levels of harmful pollutants and greenhouse gases than conventional fossil fuels. NSE said it had directed its relevant arms to develop practical solutions for converting petrol to CNG effectively.