Aware of the implication of the National Assembly’s resolution for the electricity distribution companies (DISCOs) to halt the new electricity tariff, the Association of Nigerian Electricity Distributors (ANED) on Wednesday said such decision will adversely affect the 2015 Multi -Year Tariff Order (MYTO).
In a statement by its Executive Director, Advocacy and Research, Barrister Sunday Oduntan, the Association said market priced tariff is a fundamental requirement under the agreements signed between Distribution Company (DISCOs) operators in the Nigerian Electricity Supply Industry (NESI) and the Bureau for Public Enterprises (BPE), raising the concern for sanctity of contract.
The association maintained that a market priced tariff is critical to address decades of under-investment (for instance, the 5 million metering gap) in the sector.
Read also: Electricity Tariff: Court fumes at FG, DISCOs
In the statement which reads in part, the Association said: “As the upstream operators will not receive required payment (DISCOs only receive 25% of the revenues associated with the tariff).
“Failure of the sector will result in, amongst other things, loss of employment and livelihood for approximately 50,000 Nigerians, indirect job losses from factory and other business closures, possibly in the millions; and a related outcome of discouraging further investments in the development of gas reserves and production for local consumption; and
“Expected performance improvement, with appropriate investment, on the other hand, will lead to a reduction of tariffs in subsequent years. This is empirically supported.
“Fellow Nigerians, suspending the implementation of the tariff will leave us in continued darkness, with diminished and no future prospects of growth of our economy.”
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