New tariff, labour protests and the objective reality

“It is better that as Nigerians we deepen our understanding of the objective realities and the context under which we now operate within the electricity sector.” This terse statement may have been drowned by the orchestrated chanting and sloganeering which characterized the recent wave of protests against the new electricity tariff already in effect. But, […]

“It is better that as Nigerians we deepen our understanding of the objective realities and the context under which we now operate within the electricity sector.”
This terse statement may have been drowned by the orchestrated chanting and sloganeering which characterized the recent wave of protests against the new electricity tariff already in effect. But, as the words of Mr. Joe Ajaero, General Secretary of the National Union of Electricity Employees (NUEE) their relevance to the resolution of the seeming disagreement with the new electricity tariff cannot be ignored. This is because from the tone and tempo of the labour-organized protests over the new  electricity tariff, it is very obvious that the “objective realities” defining  the situation in the nation’s electricity sector have been swept under the carpet of labour populism and exploitation of existing socio-economic discontent. The protests were staged in negligence of the concerted efforts of the electricity distributors to engage directly with a cross section of electricity consumers across the nation for the purpose of enlightenment and sensitization. Such objective realities as Inherent inadequacies of the power sector owing to decades of government ownership
And control, unfeasible tariff structure, need for greater investments in procurement and establishment of equipment and infrastructure as well as concessions and incentives factored into the new tariff were candidly discussed. Protesters also downplayed the robust role of the Nigerian Electricity Regulatory Commission (NERC) in the negotiated build up to the new tariff when public interest was resolutely reflected. As a result, the protests posed a sharp contrast to the outcome of the Consultative exercise of the DISCOs which enhanced the level of mutual understanding and rekindled the spirit of public cooperation and willingness to support the electricity distributors’ resolve to expedite progress towards more affordable supply of reliable electricity in the near future. Against the background of a failed era of unsustainable government ownership of the power sector which lumbered Nigeria with crippling deficits in power generation, transmission and distribution that still prevail, there was no reasonable or feasible alternative to privatization of the sector for getting out of the quagmire, as other nation shave done. The “objective reality” in this context is that there must be a fundamental shift in the management of the power sector for the transition to private-investor consortium ownership of the sector to be realized for the benefit of the people. Again, we have the recent and rewarding experience with the telecommunications sector where similar stagnation of services under government ownership gave way to a phenomenal boost insufficiency, efficiency and affordability as privatization opened the vista of GSM telephony, to rely on in responding to the new electricity tariff. Initial protests over “expensive” SIM cards and tariffs can hardly be remembered in these days of service providers in a stampede of unbelievably cheap bundles and free SIM offers! There is absolutely no reason why this should not be true of the electricity sector, once the new tariff structure and accompanying projects such as mass metering settle in. Besides, there is no denying significant improvements and customer-friendly innovations that hold a lot of promise for the expected better times in the near future. Despite incessant human sabotage activities targeting installations and facilities critical to steady power supply, a couple of weeks ago power generation peaked at an all-time high of 5,075 megawatts climaxing a long period of fewer blackouts and optimum power quality, boosting the morale and confidence of the majority of electricity consumers. Similar prospects have emerged in the power distribution segment. The Abuja Electricity
Distribution Company (AEDC) recently unfolded bold plans already on-going for installation of 500,000 meters at the rate of 100,000 per annum for five years after completing the pilot scheme of free installation of 5,000 meters in Minna in Niger State. The company has already invested N2 billion on improving its network assets, infrastructure and service delivery in its operating area since takeover in November 2013. All for the benefit of consumers eager for better times. Another “objective reality” that the labour protests gloss over these significant commitments by the DISCOs and other stakeholders in the power sector reform process that highlights considerable contributions in advance of accessing the anticipated accruals from the new tariff. The so-called burden of facilitating the desired enabling environment for sustainable, affordable and efficient power supply is therefore all inclusive and not the “exploitative” imposition described in the protests. It is only fair that consumers, who will ultimately join their GSM counterparts as customer-kings in the near future, also contribute their quota towards achieving this, by way of realistic tariff. While public protests are legitimate means of venting public response to public policy issues, an objective analysis of the fundamental factors necessitating power sector reforms in general and the need to bear the unavoidable burden of transiting from unsustainable and inefficient government ownership to a private-investor-driven commercial enterprise that will be as self-sustaining as the quality of its services, suggests a more realistic corresponding engagement among stakeholders as the better option. The socio-economic importance of the power sector to the nation and its citizens must always remain in focus in this period of transition and reform. Shutting down the power sector or disrupting the steady progress being witnessed is clearly counter-productive and unsustainable.
Mathias Benjamin wrote in from Ganaja Junction, Lokoja, Kogi State.