The Chief Executive Officer, Association of Nigerian Electricity Distributors, an umbrella body for the Discos, Mr. Azu Obiaya has explained the latest agitation for tariff increase.
In an interview, he stressed that it was important to raise the tariff in order to remain in business and serve the people well.
Azu said, “To review the tariff, we will be looking at an average rate of N70 per kilowatt-hour for residential consumers. But some Discos will like to have the rate as high as N105/kWh.”
Each Disco has a fixed energy charge payable by its customers. The highest charge, according to documents obtained by our correspondent from NERC for the year 2016, is N32.26/KWH and this is payable by R2 consumers under the Jos Electricity Distribution Company.
The lowest energy charge of N15.83/KWH is payable by R2 customers who get power from Ikeja Electricity Distribution Company.
A further analysis shows that the average energy charge for all the 11 Discos is N22.8/KWH.
But the Discos were said not to be comfortable with the current rate, as they argued that it was not cost reflective and was hampering the required expansion of infrastructure as well as the smooth flow of operations.
