Electricity Distribution Companies (DISCOs) say Nigeria and Nigerians will continue in darkness, if the senate succeeds in reversing the new tariff system.
The DISCOs had initially settled for an average of 40 percent increase in tariff effective from February 1, with the approval of the National Electricity Regulation Company (NERC).
The Nigerian Labour Congress (NLC) protested the increase in tariff, leading the senate to call for a reversal of the tariff hike.
On Tuesday, Suleiman Nafiz, a senator who represents Bauchi north, urged the senate to immediately intervene in the situation.
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He was supported by Dino Melaye, senator representing Kogi West, and deputy senate president, Ike Ekweremadu, who regarded the policy as ultra-wicked.
“As a country on life support, we do not need to add to the suffering of the people. For me this tariff increase is ultra-wicked and unconscionable. We must reverse it immediately,” he said.
Speaking through the Association of Nigerian Electricity Distributors (ANED) in Abuja, the DISCOs said the tariff is meant to reflect the costs that they incur in distributing power.
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“Market-priced tariffs are fundamental requirements under the agreements signed between Disco operators in the Nigerian Electricity Supply Industry (NESI) and the Bureau for Public Enterprises (BPE), raising the concern over sanctity of contracts,” ANED said.
“The absence of a market-priced tariffs creates the possibility of performance failure by the operators. Such a failure will be at a price that the government can ill-afford in these times of dire economic challenges.”
The added that reversing the new tariff would diminish the prospects of economic growth in Nigeria.
“Market-priced tariffs are critical to addressing decades of under-investment in the sector. Fellow Nigerians, suspending the implementation of the new tariffs will leave us in continuous darkness, with diminished and no future prospects of growth of our economy.”
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