Stories by Patrick Andrew
Abuja
The 11 electricity distribution companies in Nigeria have asked the federal government to allow them to sell electricity to consumers at current foreign exchange rate as against the present imposition of N197 per dollar rate.
The DISCOS said they are under serious deficits and unless the government allow them to operate based on market situation especially taking the foreign exchange situation into consideration it would be impossible for them to sustain their business.
Speaking through the Association of Nigerian Electricity Distributors (ANED), the Discos also demanded that the federal government should legally recognise the current electricity market shortfall as a deferred income which could help them re-engineer their balance sheets to be bankable.
ANED’s Executive Director, Advocacy, Mr. Sunday Oduntan said the current shortfall had reached N809.8 billion, and that the Discos have been operating on deficit for a long time now.
“We are not clamouring for an increase in tariff but government needs to come in and do something because the shortfall is now N809.8 billion. If the Discos die, the sector will die as well.
“We are all in this together, and we are all in a desperate situation and need help. We will either swim or sink together. We are allowed to sell electricity based on N197/$ which is what is in the tariff. This cannot work,” Oduntan said.
The association regretted that services have fallen below expectation but was quick to added that the situation was not of their making noting that differences in tariff has had adverse effect on their business.
“If you look at the difference as regards tariff, the same quantum of energy which may sell for N10 had by June increased to N18 from December 2015 to June 2016.
“What that means is that the invoices to us for quantities supplied have increased, and that is why publications by NBET without explanation can be factual but misleading as they have not told Nigerians that costs have increased while the Discos have not increased tariff.”
He also disclosed that the Discos have been unable to borrow funds to invest in their networks because of the deficit status of their respective balance sheets.