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Electricity tariff hike: Fashola begs consumers

Published on February 8, 2016 by   ·   9 Comments
 Minister of Power, Works & Housing, Mr Babatunde Fashola, SAN (middle), the Permanent Secretary, Power in the Ministry, Mr Louis Edozien(right) and Chief Executive Officer, Eko Disco, Engr. Oladele Amuda (left) during the Second Monthly Meeting of the Minister with Sectoral Participants in the Power Sector at the Alagbon Transmission and Distribution Complex, Osborne Road, Ikoyi, Lagos on Monday 8, February  2016.

Minister of Power, Works & Housing, Mr Babatunde Fashola, SAN (middle), the Permanent Secretary, Power in the Ministry, Mr Louis Edozien(right) and Chief Executive Officer, Eko Disco, Engr. Oladele Amuda (left) during the Second Monthly Meeting of the Minister with Sectoral Participants in the Power Sector at the Alagbon Transmission and Distribution Complex, Osborne Road, Ikoyi, Lagos on Monday 8, February 2016.

Minister of Power, Works and Housing, Mr Babatunde Fashola SAN, Monday chaired the Second Monthly Meeting of the Power Sector Operators in furtherance of his determination to find practical solutions to issues affecting the nation’s electricity industry even as he appealed to the organized labour and consumers for understanding over the new Multi-Year Tariff Order which came into effect on February 1.

The meeting which held at the Alagbon Transmission and Distribution Complex in Ikoyi, Lagos had in attendance representatives of all the Power Generation Companies (Gencos) , Distribution Companies (Discos) and the Transmission Company of Nigeria (TCN), as well as various government agencies such as the Niger Delta Power Holding Company (NDPHC), Nigerian Bulk Electricity Trader (NBET), the Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Electricity Management Services Agency (NEMSA) responsible for the regulation and development of the electricity industry.

The oil and gas industry was also represented at the meeting by senior executives of the Nigerian National Petroleum Company (NNPC), Gas Aggregating Company of Nigeria (GACN) and the Nigerian Gas Company (NGC).

Fielding questions from newsmen after being conducted round the completed and ongoing power projects at the Alagbon Transmission and Distribution Sub-station, under the management of the Eko Distribution Company which co-hosted the meeting, Fashola said although the decision to increase tariff was a hard one, without proper pricing of Power, the whole system would collapse after sometime.

The Minister, who likened the decision to a case of quinine and Malaria, added “It is a hard decision, but we appeal to all for understanding because we are doing it in the interest of all the people. We do not have many choices but we promise that it will get better.”

Giving assurance that the problem in the Power Sector could be solved with the right tool, Fashola declared, “I know that the people who have been disappointed over a long time will feel a sense of concern that tariff has gone up but the truth is that the government of yesterday lacked the courage to tell the people the true situation.

“This is why you had review of tariff every two years which presupposed that tariff would increase every two years. But we have done a 10-year tariff and if you look at the tariff closely you will see that about two years from now we will begin to go down a sliding scale and whatever price the tariff offers.”

Fashola appealed to the media to help in enlightening the populace on the essentials of power production and distribution adding, “Everybody must know how power is produced and distributed.”

The Minister, who also expressed reservation about how the privatization exercise was conducted by the last administration, however, said he would move on with what he met on ground and try to improve it, assuring that his ministry was capable of solving the problem.

“This is the problem that has been here for the last 16 years if you put it mildly and about 100 years ago if you put it more elaborately. We are less than a hundred days in office but I can assure you we will solve the problem if you give us the tools,” he said.

The Minister who explained that the decision to hold the Power Sector Operators’ meeting in different parts of the country was to facilitate experience sharing and provide the opportunity for on the spot tackling of problems, said the meetings would also help achieve a better appreciation of the processes of electricity production and the peculiar challenges of each operator.

Speaking specifically about the Alagbon Substation which he had just inspected, the Minister said it sank completely many years ago and was being rebuilt hence its still being under construction.

According to him, the Distribution Centre of Eko Disco had metered distribution panels through which the power received from the Egbin intake line is measured because it must be paid for just as the gas provider for the generating company must be paid and likewise the receiving consumers of the electricity sent to different areas in the power production economic value chain.

Appealing for stability in the sector, the Minister noted that as at January this year, the nation recorded an all time high electricity supply of 5000 megawatts, attributing the success to the stability that has been experienced in the market.

“It is important to also state that the stability we have experienced in the market is comforting and we must do everything to protect it. That stability is giving confidence to the banks, to the gas investors, to the Gencos and a lot of them are coming into Nigeria. They want to participate in power and it’s because of the stability that the Government and leadership of the President have provided and we must do everything to protect that stability,” the Minister said.

Noting that the sector needs a lot more participants given the growing population of the country, Fashola said the challenges of gas transmission and the way the privatisation of the sector was handled are being addressed, adding that he would rather move forward than lamenting the past.

Reiterating that the nation and various stakeholders should allow stability to endure, the Minister stated that rather than start a disruptive fight, labour and all concerned stakeholders should embrace the path of productivity.

Posted by on February 8, 2016, 10:58 pm. Filed under Business, Business News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

9 Comments for “Electricity tariff hike: Fashola begs consumers”

  1. Sunny Akhigbe

    Can’t Fashola face challenges and solve problems of today without referring to the government of yesterday? The man is sounding monotonous and silly!

  2. smith Johnson

    I am not suprised at Fasholas action. He is a man who like to increase prices and as i always say, its now people will see his level of mediocrity.
    As an investor in you have to provide the infrastructure needed for the success of your business,but Fashola wants to help them by putting the cost of infrstructure on the poor massses of the country who some have never experienced 24 hr uninterrupted light in the life.

  3. smith Johnson

    I am not suprised at Fasholas action. He is a man who like to increase prices and as i always say, its now people will see his level of mediocrity.
    As an investor in you have to provide the infrastructure needed for the success of your business,but Fashola wants to help them by putting the cost of infrstructure on the poor massses of the country who some have never experienced 24 hr uninterrupted light in their life.

  4. ayodele

    I dont even need to read this write-up before commenting on it. Its now that people of Nigeria will know that Fashola has no human feeling at all and that’s how he govern lagos state. Fashola is working Lagos are suffering during his regime, his government is always for the rich people. Fashola should go and speak with his APC government and governors to pay off all outstanding salaries and should wait for the economy to be stable before any increment in electricity tariff. meanwhile, its not increment that should even come first they should show us their own commitment with the little resources they have at hand by increasing the power supply before introducing increment so that we can all welcome and embrace it. They most also make sure all house are given the new meter before anything. I stay in Egbeda side of Lagos and in my area we haven’t see anything like prepaid meter all houses are still getting the usual estimated bills.

    FUCK FASHOLA!!!

  5. TAM

    Now we av light ,we pay high and we stop buying fuel. that’s good idea. before we don’t av light and we pay for what we don’t used. kudos to fashola. Pls lets joining hand and move this country forward.

  6. Omooba

    Fela’s ‘oro ebe o s’ ele’ is most appropriate for the dancing of BRF. And as a masquerade in this matter, he must dance very very well…………..for Nigerians to get hypnotised and pay the tariffs by way of :
    1. Ensure 24/7 power supply.
    2. Free supply and installation of pre-paid meters to all consumers and refund to those who have paid for them.
    Because it is unheard of that consumers will be made to pay for a measuring instrument for a commodity sold by a marketer. Can a motorist be so charged for a dispensing pump in a gas station?
    Where is it done in the whole world except Nigeria? THIS IS ABSOLUTE RUBBISH. What is more, the poor quality meters have been identified as source of domestic fire incidents due to overheating. Who pays for the damages and losses talkless of the replacement of the meter.
    BRF will do well to appreciate the situation and be reasonable with the suffering and long short-changed fellow Nigerians.

  7. Ado Omar

    Sometimes ,some I think we are been taking for granted by our policies makers , how on earth they want to increase on a terrif on a commodity that is largely unavailable to consumers in the name of attracting investors.
    A government that paid his worker18,000 minimum wage.
    Nigerian most suffer to attract foreign investors! Rubbish.

  8. nomanisGod

    i think this man call fasola is sick…you want the poor people to bear the burdens and what happen to you guys that are incharge of the people assets. there is no different between you politicioans you must all face the wrath of the people sooner or lster. nonsence

  9. garba audu

    Fashola, have not human feeling. We the consumers, do we support to give the investors money before they work on the light or power sector?

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