Friday, 5 February 2016

Fashiola criticized, NLC set to strike, as electricity tariffs rise

Following the increase in electricity tariff, as set by the Nigeria Electricity Regulatory Commission (NERC), the minister for power, works and housing, Babatunde Raji Fashola, has come under heavy criticism.
Fashola had said on Teusday, February 2, that the increment in electricity tariff will improve power supply. Noting that the increment was not unlawful, the minister stressed that the rise in tariff is increase the standard of supply in a bid to keep investors who will pull out if they get no returns on their investments.
Babatunde Fashola said the increase in electricity tariff is lawful and to the benefit of Nigeria
However, the change in tariff did not go down well with the Trade Union Congress which in reaction has lambasted Fashola for insisting that increase in electricity tariff is the only way to enhance stable power supply in Nigeria.
The union disagreeing with the NERC, which announced the increase last month, said the minister’s argument that an Act of the National Assembly actually empowered the commission to increase tariff and that the Act cannot be tampered with even by the federal parliament, was certainly “very lame, too simplistic and misleading.”
The TUC said: “Any Act that preys on the masses that it is supposed to protect negates public policy. Any Act that compels the citizens to pay for services not delivered is not only flawed and undemocratic but is ultra vires the power of the Assembly to make laws for the good of the country, and should not enjoy any applicability.
“Any Act that further impoverishes the downtrodden and lowly is evil and should be discountenanced. We lend our voice again to advocate the need for the minister and NERC to stop trying to enforce the obnoxious Act.”
In statement signed by the duo of Comrade Bobboi Bala Kaigama, its president, and Barrister Musa Lawal, its secretary-general, the TUC noted that: “It is high time the minister and proponents of the tariff increase are reminded that one of the major reasons Nigerians demanded a change of leadership in May 2015 was so they could heave a sigh of relief. A major expectation was that we would, for once, stop paying for services that are not rendered.
“We never anticipated that the already fraudulent billing system would be made worse. We saw no NERC/FASHOLAGATE in the horizon!
“While we agree that the cost of procuring raw materials to generate electricity could be high, does it make any economic sense that the poor barber who still finds himself having to fuel his small generator even at the current high rate should be made to pay more for a service whose supply is very irregular and uncertain?
“With the benefit of hindsight it has become evident that the unbundling of the Power Holding Company of Nigeria, PHCN, was a well-crafted ploy to deceive Nigerians into believing that it would address their pains.”
The TUC which enumerated reasons why the hike should be rejected by all Nigerians, described it as dictatorial, insisting that: “due process stipulated in extant laws for such increment was not observed. We refer especially to Section 76 of the Power Sector Reform Act 2005.”
Other reasons as given by TUC include: “There has been no significant improvement in service delivery. Worse still the vast majority of consumers are yet to be metered in accordance with the signed privatisation Memorandum of Understanding (MOU) of 1st November, 2013 which stipulated that all consumers should be metered within 18 months gestation period.
“There is a subsisting court order dated 28th May, 2015 by Justice Mohammed Idris of the Federal High Court, Ikoyi, Lagos in the case of Toluwani Yemi-Adebiyi vs NERC & Ors. that no increment be made until the determination of the substantive suit. Any increment at this time would be failing to take cognisance of the present biting economic recession in the country and would further impoverish the poor masses.”
According to Daily Post, the TUC informed that:“Privatisation in any part of the world is meant to inject fresh funds into the concerned sector, and not to impose ridiculous tariffs on the groaning masses. The power situation in Nigeria is proving the reverse.
“The Trade Union Congress of Nigeria will steadfastly resist the satanic Act and its advocates until the right things are done.”
In the same vein, the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), civil society allies and electricity consumers across the country have concluded plans to hold a nationwide protest on Monday, February 8, to oppose the 45 per cent increase in electricity tariff as announced by the NERC.
The NLC in a statement, by its president, Ayuba Wabba said its members have been sufficiently mobilized to encourage Nigerians to come out in their numbers to support the protest.
He siad: “ The Abuja rally will start at Labour House, Central Business District at 8.00am before moving to the NERC head office at Adamawa Plaza, Plot 1099, First Avenue, Off Shehu Shagari Way, Central Business District. From the NERC office, the rally will roll to the Abuja Electricity Distribution Company at Zone 4. The rally will mobilise from there to the National Assembly.”
“This protest rally has become necessary after all effort to make NERC shelve the idea of increase failed.  Indeed, rather than see reason with Nigerians, the minister for power, works and housing has been advancing spurious argument in justification,” Wabba stressed.

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