Manufacturers Association of Nigeria, MAN, called for reduction of electricity fixed charge from the initial average of N250, 000 to N25, 000 for small and medium scale industries, SMIs, in the country.
MAN, which made the demand at a meeting with the Nigeria Electricity Regulatory Commission, NERC, also asked that manufacturers should be allowed to continue with the old Multi Year tariff Order, MYTO, rate, pending the expiration of its tenure in 2017.
The association also called on NERC to mull over the approval of a uniform tariff for all manufacturers in the country irrespective of their business location.
The union said: “We seek your understanding in the following areas: fixed charge should be reduced from the initial average of N250, 000 to N25, 000, particularly for SMIs, across board.”
“The fixed charge should be pro-rated, based on the amount of energy consumed by companies. Manufacturers should continue to operate on the old MYTO rate, pending the life of its tenure, which is 2017.
“NERC should consider and approve a uniform tariff for all manufacturers in Nigeria, regardless of wherever they may be located, rather than giving some companies a preferential lower tariff advantage over the others because of their geographical location,” the group added.
Chairman of NERC, Dr. Sam Amadi, who responded to the demand of the union, said the commission was already deliberating on the situation and by Thursday, March 5, final decisions will be communicated to the public.