Increase in electricity tariff must be matched with improved services, including metering and ending estimated billing. According to the former Chairman
Electricity tariff review is expected to move the power industry to a cost-reflective one, which will provide investors with the right incentives and increased confidence to commit capital. However, experts say regulation is also paramount, reportsIncrease in electricity tariff must be matched with improved services, including metering and ending estimated billing.
“Therefore, we have to be disciplined with regulation, such that tariff does not respond too much to political considerations. I think tariff should increase or decrease based on the Multi-Year Tariff Order framework,” Amadi stressed. The Chief Operating Officer, Ibadan Electricity Distribution Company , Mr. John Ayodele, also admitted that upward review of electricity tariffs would solve the challenges confronting the energy sector.
He noted that the price of energy bought by the DisCos had been on the increase apart from the loans from the Central Bank of Nigeria which, he said, had to be repaid.According to him, a total of N38.9 billion was incurred last year on energy loss, adding that between 2015 and last year, average tariffs were not cost-effective.
”Five out of every new meter installed are bypassed in their first week of installation, while 85 per cent of customers do not pay bills in full,” he said.
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