Segun Oni
Undoubtedly, the Nigerian Electricity Regulatory Commission called NERC is the sole authority for the generation, transmission, and distribution of electricity in Nigeria. As a regulator, part of its duties is to instill discipline in the electricity industry and make sure that participants and stake holders in the industry adhere strictly to the rules and laws of the electricity industry in Nigeria. In doing this however it has to ensure that it creates a fair and competitive playing field. This is a cardinal rule in any game, industry and environment where the are set goals and objectives.
When goals and objectives in any industry are met there are rewards and approbations when such achievements are obtained strictly by following the rules as generally expected. That was what was at play when the Central Bank of Nigeria,CBN, the regulator of the Nigerian banking industry pounced on, penalized and asked some banks to pay for wrong charges allotted their customers. This in effect showed that such banks have violated the rules of the game or profession of banking and have behaved unethically or unprofessionally. This goes to show that regulation is a game of carrot and stick and the regulator wields immense authority to dispense justice no matter whose ox is gored. This simple fact of regulation is very much at play in the Nigerian electricity delivery system where electricity distributors called DISCOs are monitored stringently by the sole regulator of the industry, the NERC.
It was therefore a great surprise to industry watchers in the electricity delivery system of the electricity sector of Nigeria to deal with the unpleasant news that the Senate of Nigeria has interrupted the march of the electricity industry in Nigeria to modernity and world standards and quality, by asking the regulator of the industry, NERC to stop the announced increase in the tariff of electricity this year. The Senate’s order was predicated ostensibly on its perceived exploitation of Nigerians economically by operators in the electricity and power sector of the Nigerian economy. But can this be right or does it make sense and more importantly, is it fair to the statutory regulator of the industry, NERC? Definitely the answer is no on all counts.
First as already pointed out the duty of NERC is to administer justice and mete out punishment to those who violate the rules of the electricity industry and so far this body has done very well to deter violators or potential violators of its rules. Indeed, in the electricity industry in Nigeria one can boldly state that the fear of NERC is the beginning of wisdom for practitioners and stake holders in the electricity and power sector in Nigeria today. So how come the Senate has taken over the responsibilities of NERC as if that regulator of the Nigerian electricity industry has abandoned its responsibility to protect the Nigerian electricity consumer?
The Senate by overruling the tariff increase is unwittingly or deliberately accusing NERC of negligence and lack of patriotism and those are grievous charges that must put NERC the sole regulator of the electricity industry in a very tight corner indeed. But is that senatorial conclusion correct or deserved by NERC? That is something that NERC itself would have to defend. Then the senate too must show its locus in interfering in the price regime of tariff allocation which is the purview of NERC according to our statutes .
If the Senate felt aggrieved by the tariff increase for whatever reason it should have raised its concern earlier or called in NERC to face the appropriate senate committee to explain the rationale or reason for the tariff increase announced over a year ago for implementation this year in February. That is the fair and reasonable thing to do. For now what the senate has done is to throw away the bath water with the baby. That is not fair to NERC and it is not fair to the long suffering Nigerian electricity consumer waiting to get his direct billing meter from the DISCOs scattered all over the nation poised to move the nation out of the present power darkness.
Oni, an analyst, writes from Ondo
