Tariff war: FG intervenes as states, Discos’ rift deepens
As s the crisis between states and electricity distribution companies continues to degenerate over who has the power to fix electricity tariffs, the Federal Government, through the Nigerian Electricity Regulatory Commission, has summoned all the stakeholders to a meeting scheduled for next week, The SOCIETY WATCH reports.
Energy commissioners of state governments, under their umbrella body known as the Forum of Commissioners for Power and Energy in Nigeria, have repeatedly insisted that the Electricity Act, 2023 (Amended), has empowered state governments to regulate their respective power markets.
But power distribution companies, under the aegis of the Association of Nigerian Electricity Distributors, insisted that, although the Act enabled the states to regulate their power markets, the state governments lack the power to put a price on cross-border electricity.
As a result of this, neither the states nor the Discos are ready to shift ground over who has the authority to regulate electricity tariffs. As state regulators make moves to design tariffs for the electricity markets in their domains, starting with Enugu State, power distribution companies declared that this cannot work.
The tariff ordered by the Enugu Electricity Regulatory Commission recently also sparked the reactions of power generation companies, including the Niger Delta Power Holding Company, as the Gencos argued that states have no power to dictate the cost of power from the national grid.
To de-escalate the situation, the national regulator, NERC, has invited all the actors involved in the imbroglio to a meeting scheduled to be held next week in Lagos, as the Discos declared again on Thursday that the states should not destroy the power sector with the quest to regulate electricity tariffs.
The General Manager of Public Affairs at NERC, Dr Usman Abba-Arabi, told one of our correspondents in an interview on Thursday that the meeting would discuss the matters and proffer solutions to them.
The NERC spokesman maintained that invitations have been sent to the state regulatory commissions, the distribution companies, and other stakeholders in the Nigerian Electricity Supply Industry.
The next Nigerian Electricity Supply Industry stakeholders meeting is scheduled for next week in Lagos. State Regulatory Commissions have been invited to attend. The Discos and other industry players will all be in attendance. It’s a forum where industry issues will be discussed and solutions proffered,” he stated.
Abba-Arabi stated that the meeting is purely for the industry and would be done without the attention of the press.
Discos talk tough
