Tariff Plan To Be Increased To 200%

Nigeria Power Sector

There is likely to be an increase of over 200% in electricity tariff plan if the request by power distribution companies in Nigeria, to step-up the price of energy charge from N22.8KWH to N107KWH is being considered and approved


The Chief Executive Officer, Association of Nigerian Electricity Distributors, an umbrella body for the Discos, Mr. Azu Obiaya, confirmed the latest agitation for tariff increase, in an interview with PUNCH's Correspondent, expressing his own reason why there should be an increase a electric tariff plan in order to meet up with business and serve Nigerians well

According to Mr Azu, "To review the tariff, we will be looking at an average rate of N70 per kilowatt-hour for residential consumers. But some Discos will like to have the rate as high as N105/kWh.”

He also said that  the debts owed power distribution companies by private homes, businesses and government ministries, departments and agencies post-privatisation amounted to N568bn. Which had hampered the operations of the different Discos, a development that had made it difficult for the companies to meet the funds remittances required of them by the Market Operator.

Azu said,  “Discos are experiencing revenue shortfall on a monthly basis of N38bn. As of June 2016, the MDAs owed the Discos N53bn post-privatisation.

“The books of the Discos are so bad that they have no chance anymore to access finance. These books do not reflect the cash flow that is necessary for them to be taken seriously by any lender.”

This is coming less than eight months after about 45 per cent increase in tariff was imposed on electricity consumers nationwide.

Source: PUNCH News