An energy expert says it is illegal to make Nigerians pay for power not consumed while it is also criminal to consume power and not pay.
Speaking on Channels Television’s Sunrise Daily, Mr Yemi Oke warned that the issue of tariff is a very sensitive one and must be carefully handled.
Recently, the Minister of Power, Works and Housing, Mr Babatunde Fashola, had said that electricity consumers in Nigeria may have to gear up to pay higher tariffs to enjoy constant power supply.
Mr Oke, while stating that tariff must be seen as “paying for the power consumed”, explained that “Tariff is purely a legal issue because it is regulated (and this) is far different from a policy issue.”
Tariff Methodology.
Mr Oke acknowledged the progress made so far by the Ministry of Power, adding that the Minister has hit the ground running in terms of having a clear understanding of the problems in the sector.
According to the energy expert, what Mr Fashola said borders on the tariff methodology.
“Tariff methodology simply means the basis for agreeing what is to be charged to consumers.
“The principle says that you must encourage DISCOs to charge enough tariff to be able to equip their investment with reasonable yield.
“It also says that the methodology should aim at facing off any form of production subsidy,” he said.
Mr Oke also gave his recommendation on the development of an effective tariff system.
“The tariff structure we have now is not likely going to work because it targets production. That is why some of us will prefer a kind of feeding tariff structure that targets consumption,” he said.
“We have to start reworking the tariff methodology to reflect actual consumption as against production.
“We need to accelerate the rate of metering which is easier to get people to pay actual values for power.
“But to jack up tariffs on estimated billings without supplying power to Nigerians will be problematic (and this) is a recipe for crisis.”
The Minister of Power, Works and Housing, Mr Babatunde Fashola had recently said that a tariff system which allows consumers of electricity to pay for only what they consume is a sure way to having stable electricity supply in Nigeria.
At a media conference in Abuja where he informed the media about his blueprints for handling issues in the three ministries he oversees, he emphasized his determination to implement an effective market tariff system for the power sector.
