The Nigeria Consumer Protection Network (NCPN) has called on the Federal
Government to pull out its 40 per cent stake in the Power Sector and break the monopoly of the 11 Electricity Distribution Company.
Mr Kunle Kola Olubiyo, made the call in a statement obtained by Vital News on Thursday.
Olubiyo premised his suggestion on the the recent floating of Naira/ Deregulation of the Forex Trading Windows, allowing the value of Naira to be determined by market forces and the removal of subsidy on petrol.
“It is expected that these efforts will naturally impact positively or negatively on electricity tariff and translates into general high cost of living in Nigeria,
depending on the school of thought or individual’s perception.
“The last tariff increase in Nigeria was benchmarked on N400/$1, being the prevailing official exchange as at then.
“As of today, Exchange rate is benchmarked at N750/$1.
“Now Electricity Tariff will be fixed using the current open market rate of N750/$1,” he said.
The President of NCPN expressed fears that the new naira floating policy will likely pushed up current electricity tariff by 50 per cent from July 1, 2023.
Olubiyo was a
former, Member , Presidential Adhoc Committee on Review of Electricity Tariff in Nigeria (in August, 2020 ).
Moving forward,
Olubiyo suggested that the Federal Government should after the withdrawal of its 40 per cent stake in the sector split the 11 electricity distribution companies into “smaller franchise units in ways and manners that would break the present market monopoly and promote the ideals of competitive electricity market.”
He said government should also address matters relating to “domestic gas obligation, appropriate gas pricing and gas to domestic market should be sold in local currency (Naira) for use by Gas to Power Generation Power Plants.
“Government should provide tax incentives, fiscal and non fiscal incentives and access to long term low interest single digits credit facilities to indigenous meters assembling plants / local meters manufacturers in order to strengthen their production capacity . .
“End Users of Electricity in Nigeria should be given the opportunity to buy Pre Paid Meters on the Shelves.
“Conversion of the Post Paid Meters in use by Maximum Demand Metered Customers who are bulk users into
Pre Paid Maximum Demand Meters in other to enhanced Energy Accountability and Customers Centric Customers Satisfaction and value for money.
“More investment should be channel into capacity expansion of critical power grid infrastructure and network improvements in other to upscale efficient service delivery, quality of supply, customer centricity, health safety and environment in the post privatized nigerian power sector value chain,” he explained.
(vitalnewsngr.com)
