NBET cautions DisCos over clamour for electricity tariff hike
The Nigerian Bulk Electricity Trading Plc (NBET) yesterday cautioned electricity Distribution Companies (DisCOs) on their demand for reflective tariff saying the current tariff for their customers was not enough for the business to break even.
Speaking in Lagos during the Sahara Power roundtable discussion, the NBET Managing Director, Dr. Marilyn Amobi, said what most electricity consumers are paying is far higher than what they are ought to pay if they are metered.
Represented by the company’s Head of Procurement, Dr Eugene Edeoga, said, “The problem of the power sector is not cost reflective but a whole lot of other issues. There is no study that has shown that the current tariff being paid by consumers are not cost reflective. Right now, half of the population of electricity consumers are not metered, they are placed on estimated billings and some of these consumers are paying far higher than what they consume.”
The NBET boss said if the Discos succeed in their demand, there is likelihood that there will be more consumers who will indulge in power bypass, than now, thereby causing decline in revenue generation for the companies.
Chairman Egbin Power, Kola Adesina said estimated billing is a phenomenal challenge in the world. “It is certainly impossible as we have it today in the world to meter everybody. Government had the privilege of running these utilities for 53 years. Unfortunately during the period, government could not meter 10 per cent of the consumers and suddenly five years down the line government, wants us to do the magic. This is not possible if the fundamentals are not there,” he said.
Chief Financial Officer, Sahara Group, Mr Aigbe Olotu said electricity generation companies currently have a N30 billion monthly shortfall as it put the total debt at N1.1 trillion.
He lamented that all the financial institutions that had been the financiers of the private investors who acquired the companies in the power sector are no longer willing to support the sector again.
The Lagos State Commissioner of Energy and Mineral Resources, Mr Wale Oluwo, said the DisCos lack control of the pricing of their product, thereby jeopardizing the health of their balance sheet.