The Transmission Company of Nigeria (TCN) on Wednesday
came under fire from the Nigerian Electricity Regulatory Commission (NERC) over
the company's inability to present a good case for a raise in the electricity
tariffs currently being paid by Nigerians.
The public hearing scheduled to apprise
stakeholders with comprehensive reasons why the regulatory agency should
consider the request by the transmission company ended abruptly in Abuja after
the TCN for several hours failed to convince the stakeholders.
TCN, represented by Mr. Edmond Eje, told the
three-member NERC panel that all the details were already with the regulatory
agency, stressing that there was no need to rehash them.
But Chairman of the panel and Vice Chairman, NERC, Mr.
Sanusi Garba, reminded TCN that the hearing was in line with the business rules
of the commission in relevant portions of the Act setting it up, which requires
the transmission company to present its case to the panel of three and some
conveners to interrogate the submission of TCN whether they deserved the hike
in tariffs or not.
"Our opinion is that the presentation has not
displayed any justification why the hike should be effected.
"The focus should be more about why you want
an increase. Because whatever we approve as a commission is going to be paid by
somebody else-the consumer.
"That is why the stakeholders are asking why
this needs to be done. We were expecting a comprehensive presentation of what
you want and why you want it.
"I think we have got to a point to decide
whether to proceed with this hearing or not. The point is whatever rates are
approved, consumers are going to pay; however, the point of this sitting is to
justify to the public why the rates should be approved.
"There's nothing that's classified in this
business. Everything is open. Whatever you have, you are to present it. Put
everything out for everyone to hear," Garba said.
Also, NREC Commissioner for Legal, Licencing and
Compliance, Dafe Akpeneye, who is a member of the panel, argued that public
hearings take place all over the world, stressing that if the TCN wanted an
approval of new rates, it should be able to make a good case for it.
According to him, "It's not for you to come
here and say there have been subsequent or previous presentations you made to
the commission. It is at this point that your filings are considered by the
commission and interrogated by the people who will pay. You need to come another
day prepared.
"Right now, there's nothing to hold on to for
the commission to make a resolution. You need to have a detailed presentation
stating what you have done. These issues are not addressed, and these are
issues that we put before the public. As we sit here, there's nothing from the
TCN."
Earlier, the TCN representative said the operator
was of the view that what was proposed as the tariff was not good enough to
provide the quality of service, and as a result needed a review.
TCN said: "They (NERC) told us to go for due
diligence and we did and settled for 260 megawatts, and after the conditions
required, we came out with an equivalent demand of N3.6 billion per month.
"The regulator didn't look at it kindly. They
said it will be too difficult to do the spinning reserve."
The representative argued that the details were not
for public consumption since they were already with the commission, a point
which was countered by the panel chairman, who noted that there's no secrecy in
the operation of the commission and the entire electricity sector.
The public hearing was subsequently rescheduled for next
Monday to allow the TCN prepare and present a good case before the
stakeholders.
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