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Power firms demand 200% increase in tariff
There may be a fresh increase of over 200 per cent in electricity tariff being paid by residential consumers if a proposal by power distribution companies to raise the average energy charge to N105 per kilowatt-hour from the current rate of 22.8KWH is approved.
This is coming less than eight months after about 45 per cent increase in tariff was imposed on electricity consumers nationwide.
The power firms attributed their latest push for tariff increase to high inflation rate in the country, scarcity of foreign exchange, devaluation of the naira and the huge debts being owed them.
Already, the Discos said they had hinted the Nigerian Electricity Regulatory Commission about the proposal but no action had been taken on it yet.
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 our correspondent, stressing that it was important to raise the tariff to remain in business and serve the people well.
Azu said,
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Nigerians spend an estimated N3.5 trillion yearly on fueling generators to meet commercial and domestic needs , as grid power is seriously inadequate. A report from GIZ, a German-based firm, said generators provide alternative source of energy and further improves economic activities for the country.
The firm, which specialises in offering solutions to countries in solar and other forms of renewable energies, in a report, made available to The Nation, said Nigeria was one of the major importers of generating sets in Africa, noting that the country has spent huge amounts of money on buying, using and servicing generators.
It said Nigeria has been spending between N3trillion and N3.5trillion yearly on fueling generators in the past three years, adding that the country mostly imports generators from Asian countries such as China, Japan and others.
The firm said it was working on a study that would capture the expenditure incurred on importation and maintenance of generators in Nigeria and other African countries for 2016, adding that generators consume huge volumes of fuel after automobiles in Nigeria because power supply is not regular.
It said Perkins and other brands were used by manufacturers because they help in sustaining production activities.
The President, Renewable Energy Association of Nigeria (REAN), Mr. Segun Adaju, said the N800billion given by the Nigerian Bureau of Statistics (NBS) as the expenditure on fueling generators in a year was small when one considers the fact that the country was running what he described as a