POWER distribution companies in the country have appealed to all consumers of electricity and general public to exercise patience over the
new tariffs released recently by the Nigerian Electricity Regulatory Commission
stating that it is a normalcy and feature of reforms across the globe. He
assured that the bills would eventually be reduced in no distant time as soon
as the operators stabilized on then huge investments they embarked upon.
In a statement by the Executive Director, Research and
Advocacy, Association of Nigerian Electricity Distributors, Mr. Sunday Oduntan,
he stated that the operators should not be blamed over the increment which is a
conventional norm all over the world as the action was aimed at improving the
sector which would in turn affect the economy at large through job creation and
other business opportunities.
He added that the increment from 5,000 megawatts and a
perennial increase would boost the economy at large adding that the new tariffs
are indicative of the high investment required to turn around the sector for
the benefit of all and sundry.
“The increase in power generation will help to mitigate the
negative cash-flow and revenue shortfalls that have bedeviled the sector since
the handover of the assets to private operators, and hindered the ability of
the generators to increase supply due to their inability to pay gas suppliers.
“The good news is that with increased investment that will
occur as a result of the ability of the operators to generate a credible
cash-flow that will provide them with access to financing for investment in
distribution, generation and transmission infrastructure, the cost of
electricity supply and distribution will be reduced.
“This reduction as a result of increased investment and
efficiency gains, will result in lower tariffs for electricity customers. This projection
is consistent with similar electricity reforms that have taken place all over
the world. It is empirically supported,” Oduntan said.
It would be recalled that similar increment was experienced
during the reforms in telecommunication sector which made acquisition and services
of the Global System Mobile (GSM) to be extremely on the high side at the
initial period but reduced drastically when the operators stabilized. The acquisition
of a GSM SIM card then was sold as much as N25,000 against the present price of
about N100 for a SIM card or even free on some promo offers.
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