Hard to implement new tariffs with poor customer records, metering – Fashola

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Speaking on a Channels Television early morning show yesterday in Abuja, the Minister of Power, Works and Housing, Mr. Babatunde Fashola, defended the decision of the Nigerian Electricity Regulatory Commission (NERC) to hold back the implementation of up to three consecutive tariff reviews, THISDAY reports.

He said it would be difficult to allow the 11 electricity distribution companies (Discos) in Nigeria’s power market charge new rates on electricity they supply to their customers across the country because the country does not have an accurate record of electricity consumers in the Discos’ networks or enough customers that are metered by the Discos. Fashola, stated that in as much as the tariff was important to the commercial operations of the electricity market, the government would want to see that it is fair, and would do this by properly dimensioning the market.

He argued that it was impossible to have a fair tariff in an electricity market that has just about seven million households as its recognised customers out of Nigeria’s 180 million people, adding that proper consumers’ enumeration was required to establish the true basis for calibrating tariffs in the sector. He also noted that the Discos would have to improve on their deployment of meters to consumption points, and that until these were done, approving a cost reflective tariff for the market looked difficult.