The Chairman, Egbin Power Plc, Mr. Kola Adesina, has warned that electricity tariffs will go up if the number of customers within the networks of the distribution companies reduce on the back of the recent declaration by the Minister of Power, Works and Housing, Mr. Babatunde Fashola, which stated that eligible power customers were permitted to purchase electricity directly from the generation companies other than the Discos, The Punch reports.
Adesina, at a policy dialogue on the power sector organised by the Lagos Chamber of Commerce and Industry, highlighted the possible implication of such a policy for the power sector. He said, “When you create eligible customers, what you are saying is that industrial and commercial users who are strong and capable enough to stand on their own to directly negotiate with the sellers of electricity can start to do so.”
“The moment you reduce the number of eligible customers in the current portfolio of distribution companies, tariff will go up because in the computation of the tariff, part of what was used was the number of customers that are currently being supplied. So, let’s have a total stakeholder analysis regarding the relevant public; and how will any of these policies impact on each of the relevant public in the sector,” he added.
Source: Energy Mix Report