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SERAP sues Nigeria’s president, others over electricity tariff hike
The Socio-Economic Rights and Accountability Project has filed a lawsuit against Nigeria’s President over the failure to reverse what it describes as unlawful and unjust increase in electricity tariff, and to probe the spending of public funds as ‘investments and bailouts’ to DisCos and GenCos since 2005. Meanwhile Discos say the poor power supply witnessed in the past weeks is due to low lower generation. Sam Amadi, Director of the Center for Policy and Research joins CNBC Africa for more.
Fri, 27 Jan 2023 22:00:42 GMT
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AI Generated Summary
- Legal action taken against the President for electricity tariff hikes
- Concerns over meter affordability and financing
- Operational challenges causing power supply issues
The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the President of Nigeria regarding the recent surge in electricity tariffs and the allocation of public funds to Distribution Companies (DisCos) and Generation Companies (GenCos) since 2005. Despite these legal proceedings, the Director of the Center for Policy and Research, Sam Amadi, highlighted that the president is not directly responsible for setting tariffs under the Electricity Power Sector Reform Act. The responsibility falls on the Nigerian Electricity Regulatory Commission (NERC). Amadi emphasized the importance of ensuring that any tariff hikes align with regulatory guidelines and do not detrimentally impact consumers. He expressed concerns that mismanagement of regulatory decisions could have adverse effects on the economy and investor confidence. The issue of metering has also been prevalent in recent discussions. With plans to distribute four million meters as part of the national mass metering program, affordability remains a key concern. Amadi discussed the challenges faced in financing meter acquisition and suggested a potential shift towards consumers procuring meters themselves to alleviate the financial burden on the government. He emphasized the need to strike a balance between public expenditure and market solvency to enhance cost recovery and reduce losses in the sector. Additionally, the power sector has been grappling with erratic supply in recent weeks, with Distribution Companies attributing the issue to a decline in generation capacity. Amadi explained that financial constraints within the sector have hindered optimal power generation and distribution, leading to stranded power and revenue losses for both generators and distributors. Looking ahead, Amadi outlined the need for immediate short-term interventions to address operational gaps and enhance transmission efficiency while advocating for a comprehensive review of existing policies to ensure long-term sustainability and growth in the power sector.
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