The chief executive of Eko Disco, Oladele Amoda has appealed to government to urgently consider review of the country’s electricity tariff as current tariff structure is not cost reflective and not investor friendly, Oriental News reports.
Amoda in his opening comment at the 19th power sector stakeholders meeting in Lagos, said though the company has recorded major improvement in its incremental power initiatives several projects are lying fallow owing to concerns about investment recovery opportunities. He said nevertheless, the company has made progress boosting several substations in Surulere, Orile, Keffi and Akoka to provide supply to its customers in Lagos State.
He informed the meeting that two firms are close to completing power projects in Ijora and Apapa under the embedded power initiative but another 10 of similar projects are stranded because investors are not comfortable with the tariff structure. “We need to address tariff to entice investors because they have expressed the concern over recovery, as the tariff as presently structured is not encouraging,” he argued.
Amoda also complained about Infrastructure gap in the industry which has largely affected performance, revealing that only one line out of two that evacuates electricity from Egbin power station down to its network is functional and that if any infraction occurs the area will slip into darkness.