DisCos defend tariff hike, claim Band A customers pay lowest rates in W’Africa
16 August 2024 |
4:29 am
Electricity distribution companies (DisCos) have defended the hike in electricity tariff, saying Band A customers in the country enjoy the lowest price in West Africa.
Electricity distribution companies (DisCos) have defended the hike in electricity tariff, saying Band A customers in the country enjoy the lowest price in West Africa. This assertion comes amid controversy over the government’s decision to end power subsidies for certain consumers.
Spokesman of the country’s 11 DisCos under the umbrella of the Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, said higher rates in neighbouring countries lead to better service.
Speaking on Thursday’s edition of Channels Television’s Lunchtime Politics, Oduntan argued that neighbouring countries like Ghana, Benin Republic, Mali and Burkina Faso enjoy better electricity supply because consumers there pay more, allowing providers to recover costs and reinvest in infrastructure.
Band A customers who receive at least 20 hours of daily power, now pay around N209.80/kWh, down from the initial N225/kWh. The government maintains that electricity subsidies are unsustainable and has begun a gradual transition to cost-reflective pricing.
ANED’s spokesperson noted that while Band A customers pay the true cost of electricity production, other bands still benefit from government subsidies of up to 67 per cent. “Even the Band A customers who are currently paying the highest in Nigeria pay the lowest tariff in the whole of West Africa,” he said.
He stressed that just 16 per cent of the total customers in the country are on Band A, revealing that all customers on Band A get required output of at least 20 hours of supply while those who don’t get are downgraded to Band B.
Oduntan emphasised that the power sector needs funds to invest and improve electricity while Nigerians can’t enjoy electricity free of charge as it’s not a social service.
“I will want all Nigeria to know that for us to be able to supply you with electricity, we need to make it happen and to make it happen we need to recover the cost, have the necessary incentive to be able to invest in it with the aim of recovering the cost back, so pay your bill and we will do all our best to serve you better. Every single household ought to be metered and be on Band A. Nigeria should be hinging towards an uninterrupted power supply. We should be aware of the fact that Nigeria needs to have electricity,” he said.
He added that for any country’s sector to industralise for progress, there is a need for electricity, which points to the need for investment and recovery of cost.
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