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Business News of Thursday, 29 April 2021

Source: The Sun

Tariff hike: Consumers demand review of power privatisation agreement

Following the proposed review of electricity tariff, electricity consumers across the country have called for a mid-term review of privatisation  agreement.

Speaking to Daily Sun, yesterday, President, Nigerian Consumers Protection Network and member, Presidential ad hoc Committee on Review of Electricity Tariff in Nigeria, Kunle Kola Olubiyo, noted that the essence of the review is to engender competition in the industry. 

“Basically, we should not window-dress the cancer. Fundamentally, why are we shifting the goal-post? Eight years after privatisation, the right way to go is to call for a mid-term review of privatisation. We have a take-or-pay option to some of these gas producers. Whether we take the power or not we pay. If the generation companies quote 7,000MW available capacity for today, whether they give us 2,000MW or not we pay for that 7,000 MW. It is not translating to economic development. What Mr President needs to do is to call for a mid-term review of privatisation. You have a distribution licence that does not encourage competitiveness. It is inimical to competitive economy. The essence of privatisation is to have a competitive electricity market. If you are displeased with a particular service provider,  you have an option. So, after seven years moratorium, we review it and bring about competitiveness” he said.

According to Olubiyo who is also a member of, National Technical Investigative Panel on Power Systems Collapses, the government should revisit the report presented to it by the electricity consumers with a view to implementing it.

“The electricity consumers that represented the ad hoc committee on review of tariff presented a six-page minority report to President’s Chief of Staff.

The economy and the citizens are on the lifeline because of the conspiracy against the end-users. It is a conspiracy against Nigeria."

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