Electricity tariff hike imminent, as stakeholders demand cost-reflective charges

Electricity consumers are to expect increase in tariffs soon as the Transmission Company of Nigeria (TCN) and the power distribution companies​ (DisCos) have urged the Federal Government to implement cost-reflective charges in electricity billings.

This call coincides with the demand by generating companies (GenCos) for the payment of over N504 billion owed by the Federal Government through an agreement with the Nigeria Bulk Electricity Trading Plc (NBET) for electricity generated and purchased.

This was disclosed in a communiqué at the end of a power sector stakeholders’ quarterly meeting in Abuja. Among the stakeholders represented at meeting were: GenCos, DisCos, TCN, NBET, Bureau for Public Enterprise (BPE), Nigerian Electricity Regulatory Commission (NERC) and Association of Power Generation Companies (APGC).

The GenCos declared that they have the capacity to generate 8,500MW and called for improvement in the transmission and distribution chain to accommodate the power generated.

The generating companies called for centralisation of market collection and appropriate disbursement based on the agreed percentages and activation of their existing contracts with NBET.

The communiqué jointly signed by Sola Adeyegbe (Ibadan DisCo), Kabiru M. Adamu (TCN) and Emeka Akparah (Omotosho Electric Power Plc), stressed that the cost-reflective tariffs should consider its impact on the economy and the sector.

They demanded for immediate payment of all outstanding debts by Ministries, Departments and Agencies (MDAs). The stakeholders reminded the government of its pledge to provide N100 billion subsidy to the sector.

To curb incessant cases of power theft, the DisCos called for legislative action through the introduction of special courts. They maintained that customers should be made to pay interest on their outstanding bills.

The service providers advocated the setting up of a meter production company to ensure efficient deployment of electricity meters to consumers.