Hike in electricity tariff imminent – Discos
The new Eligible customer policy introduced by the Federal Governent through the ministry of Power, Works and Housing is set to raise electricity tariff by at least 14% according to some Distribution Companies DISCOS
It would be recalled that the minister of Power, Works and Housing, Babatunde Raji Fashola had in June announced the Eligible Customer Policy, which enables heavy consumers using at least two megawatts of electricity to invest in the provision of the equipment and take power directly from generating companies that had the power.
Discos in Abuja however said as much as they were comfortable with the policy, a resultant tariff increase will be warranted especially by domestic power users as the designated eligible customers leave the pool of Disco customers.
“While we recognise that the minister has a right to declare eligible customers, we doubt that he has a right to further take money out of our customers’ pockets, with the potential tariff hike that will occur, as the designated eligible customers leave the pool of Disco customers.
“As an example, most eligible customers are currently being charged about N40/kwh; whereas when they leave, the energy will now be sold at about N26/kwh. This revenue loss of N14 would need to be made up by a tariff increase to the ordinary customers,” a statement by the Association of Nigerian Electricity Distributors read.
The statement said however, providing or promoting a one-sided advantage for political expediency and to be seen to be making progress where there is none was an antithesis of competition. It said until there is such a balance, it is likely that the eligible customers arrangement will end up in the dustbin with all the other ill-considered initiatives.