Dele Ayodele, the Deputy Managing Director, Ibadan Electricity Distribution Company (IBEDC) on Thursday identified poor funding and low tariff charged by Distribution Companies (DISCOs) as the bane of irregularities in the power sector.
According to NAN’s report, Ayodele in Lagos said that due to the lack of a cost-reflective tariff in the sector, funding has become a problem, adding that consumers want electricity supply for free, as the DISCOs sell electricity at a loss.
In his woprds, “We are buying energy from other chains in the sector at a higher price, while selling to consumers at a very low tariff. If DISCOs have to make any reasonable profit, there should be a cost-reflective tariff.
“At present, the tariff is structured between N28 and N29 per kilowatt, while we are getting a kilowatt for close to N100.
“This is the more reason which the government should bridge the gap by subsidising it,’’ he said.
“Government should find ways to bridge the widening gap by a form of subsidy because the DISCOs are not making any profit now. IBEDC is indebted to the tune of N55 billion to the market at present,’’ he noted.
Ayodele, however, urged the Nigerian Electricity Regulatory Commission (NERC) to adopt a cost-reflective tariff, in order to save the sector from collapse.
According to him, it will be impossible for the DISCOs to meter all their residential consumers under this tariff, Reuters reports.