More confusion trail power distribution as Discos demand tariff hike, Gencos cry for debts
The growing confusion in the nation’s power sector may be getting out hand when latest developments in the industry are pout on the table.
Before now, the Distribution Companies (Discos) had been calling for tariff hike which was not allowed. The Generation Companies are also being crippled by a debt of over N504bn and the worst case scenario can be said to be the latest face of the crisis in the sector coming from the advice of the Minister, Babatunde Fashola, telling consumers to bypass Discos and buy power directly from Gencos.
Analysts query Fashola’s based on what infrastructure the consumers will rely on to buy power directly from Gencos who are located very far from areas of high power demand.
It would be recalled that power distribution companies have also called for the implementation of a cost-reflective electricity tariff for end users as captured in the last tariff review carried out by the Nigeria Electricity Regulatory Commission.
Discos often argue that a cost-reflective tariff will be about N68 per kilowatt-hour, as against the N25/KWh that the largest percentage of electricity consumers across the country currently pays.
In a communiqué issued at the end of the second quarter market participants/key stakeholders’ interactive forum, which was organised by the Market Operator in Abuja, the representatives of the generation and distribution firms, and the TCN, read in part, “Gencos called for the centralisation of market collection and appropriate disbursement based on the agreed percentages.”
Besides, high power consumers say they want to find out from the Minister how and where they can go to apply for direct power supply from Gencos.
