TUC Rejects FG’s Proposed Power Tariff Increment

• TUC Rejects FG’s Proposed Power Tariff Increment
• Condemns Release of N600bn Bailout Fund

The Trade Union Congress (TUC) has rejected the proposed 2020 increment of power tariff by the Federal government.

TUC made this announcement in a statement signed on Friday by its President, Quadri Olaleye and its Secretary-General, Musa-Lawal Ozigi. The Union rejected the promise of better power supply through the increase; describing it as “broad day robbery”, adding that the country has suffered inadequate power supply for decades, despite paying for electricity.

The statement reads, “The TUC will not support any hike in electricity tariff when Nigerians rarely have power in their house; and factories are closing shops and fleeing to neighboring countries.”

“Nigerian Electricity Regulatory Commission should not encourage inefficiency by approving higher tariffs because the Discos do not collect the billed revenue for the current tariff.”

“The argument that the increment in tariff will help to improve power supply holds no water. For decades now, we have been paying for service not rendered which to us is a broad day robbery. Increase in tariff means, passing the low-efficiency loss to the customers. If collection efficiency is high enough, it will help reduce the gap in cost of delivering electricity and reduce the cost of high tariff”

The union also protested the disbursement of N600 billion intervention funds to power sector, saying that all previous interventions funds from the Federal Government, has not yielded positive results.

“Why should the Federal Government release another intervention funds of N600 billion to operators? What did they do with the first two bailouts of N213 billion and N701 billion released to support power distribution, generation and gas companies?”

“We have issues with government making all these serious interventions without significant progress. Is it not shameful that Nigeria with over 200 million people cannot boast of 6,000MW consistently for one week at a time that South Africa with a little over 50 million people is generating over 50,000MW?

“The truth is, the power sector; nay Nigerians, have not had peace or recorded any significant progress since November 2013 when the sector was privatized. Government cannot continue to enrich some cabals in the name of privatization,” it said.