DisCos lament N1.3trn excess tariff gap

The Electricity Distribution Company (DisCos) yesterday lamented that the directive of the federal government that specified the electricity tariff in the country has resulted to a N1.3trillion excess for its members.
This, the DisCos noted, was now an impediment to both the sustainability of the electricity market and the ability of the investors to meet the obligations of their performance agreement with the government.
The Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Mr.
Sunday Oduntan, who spoke with Journalists in Abuja on behalf of the Discos, however, called on the federal government to address the tariff gap in the country.
He said: “We are here today because of a fundamental problem, the tariff gap.
That is, the gap between what the government has specified as the price of the electricity that we distribute or retail and the true cost of the product.
“It is the gap that has solely contributed to the excess of N1.3trillion that the DisCos are carrying on their financial books, an impediment to both the sustainability of the electricity market and the ability of the investors to meet the obligations of their performance agreement with the government, which should result in the improved metering, customers service, increased customer connections that electricity consumers demand and deserve.
This gap remains unaddressed by the government.
“This gap, if left unaddressed, will create a situation similar to the excess of N1.3trillion that we currently have in the sector.
Of important note is that we are not advocating a tariff increase on electricity consumers, some of whom are already dealing with affordability issues.
“We are stating that the mandated tariff gap is a responsibility of the government and should be addressed by the government, so that Nigerians can receive the improved electricity service that they deserve’’.