To avert an increase of over 200 per cent in electricity tariff payable by residential consumers in the near future, the Federal Government has to intervene in the sector, power distribution companies have said.
According to them, the government’s intervention is vital in order to address the N809bn revenue shortfall in the industry. They insisted that the intervention could come in form of subsidy to consumers, access to foreign exchange by the companies, as well commercially reasonable financing for the Discos.
The firms explained that they were not willing and could not impose any increase in tariff on consumers, but maintained that to avoid a situation where the consumers would have to pay as high as N70 to N105 per kilowatt-hour as energy charge, the Federal Government must do something. Currently, the average rate being paid as energy charge by residential consumers across the country is N22.8/KWH, but this may increase soon if nothing is done to address the N809bn revenue shortfall in the power sector, according to the Discos. Read more