Discos Back Gencos’ Call For Electricity Tariff Hike

Discos Back Gencos’ Call For Electricity Tariff Hike

 Electricity distribution companies, also known as Discos, have expressed support for the call by the power generating companies or Gencos for hike in electricity tariff.

According to the Discos, it is a welcomed development.

The Gencos on Wednesday insisted that the Federal Government increased electricity tariff, saying if the government wants power, it cannot continue subsidising power for people

The Vice Chairman, Mainstream Energy Solution, Mr. Ismaila Funtua, made the demand on behalf of the Gencos in an interview with State House correspondents on the sidelines of the Quarterly Presidential Business Forum at the Presidential Villa.

Funtua said the representatives of the Gencos had asked for a meeting with the Acting President, Prof. Yemi Osinbajo, and the Minister of Finance, the Central Bank of Nigeria governor and the Minister of Power, Works and Housing, to sort out issues that are impediments to their business.

He noted that “Whether the government likes it or not, they have to review the tariff of power in this country. All those playing politics with it that they do not want to increase, people do not want to hear of this.

“This is my cell phone, you pay for it even before you make use of it and nobody is controlling their tariff. They charge what they want and all of us we have at least one cell phone, therefore government needs to do the needful”, he said.

Reacting to the development, the Discos said power operators wanted a “cost reflective tariff”.

In a text message in response to SweetcrudeReports’ enquiry, Eko Disco spokesperson, Mr. Godwin Idemudia, said a cost reflective tariff will help Discos live up to their responsibilities to customers and the market.

“It is not just the Gencos that need increase in tariff. This is what we have been talking about as a Disco. We need a cost reflective tariff to meet up with our obligation to our customers and the market,” he said.

On his part, during a telephone chat with SweetcrudeReports, spokesperson for Ikeja Electric, Mr. Felix Ofulue, said the present tariff is not reflective of how much they spend to make power available to customers.

“We have always said that we need a cost reflective tariff. We want an increment in electricity tariff because the one we are presently using, is not cost reflective,” he said.

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