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DisCos: We are losing N48 per unit over non-review of tariff

DisCos: We are losing N48 per unit over non-review of tariff
July 23
11:38 2018

The Association of Nigerian Electricity Distributors (ANED) says electricity distribution companies (DisCos) lose an average of N48 per kilowatt hour (KWH) of power as a result of the non-review of tariff.

ANED said the lack of tariff review had slowed down performance in the power sector.

The last electricity tariff review was said to have taken place in February 2016. The review is done by the Nigerian Electricity Regulatory Commission (NERC).

“Through the regulatory and policy actions that have been principally driven by the minister, the Discos have been forced to sell their product, which should retail for an average retail tariff that is more than N80/kWh, at an average retail price of N32/kWh,” Sunday Oduntan, executive director of ANED, said in a statement.


“While we acknowledge and are sympathetic to the government’s challenge of maintaining the balance between the myriad of its obligations and its fiscal constraint, continued failure to address this pricing gap means that we will only arrive at, and continue to exist in our current situation of N1.3tn of market shortfall and growing, and absence of the pricing signal that will grow electricity supply along the value chain.”

Oduntan had earlier said the federal government lied about an improvement in power generation, while he also accused Babatunde Fashola, minister of power, works and housing, of demonising the DisCos.

In his response, the minister told the DisCos that Nigerians were traumatised by their poor service and should make efforts to do better.



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