‘Steady power means consumers will pay more’
The Chairman of Ikeja Electricity Distribution Company, Mr. Kola Adesina has said that for Nigerians to enjoy steady power supply they must be ready to pay the right price for the consumption of electricity.
Speaking in an interview on the poor power supply in the country, he said that the cost of providing electricity all over the world is high.
“Every stakeholder also knows what it would cost to get transmission lines. The same applies for sub stations, transformers, and meters. They are universal products with known price tags,” he said.
According to him, one cannot price electricity less than the cost of production and expect a miracle.
“The current tariff that was recently approved by the Nigerian Electricity Regulatory Commission (NERC) is relatively comparatively okay to motivate investment. One can only invest if the price is right. The 10-year tariff model that the NERC has formulated is relatively and comparatively okay for investors to invest.”
He added that tariffs have historically been low in Nigeria because government’s involvement provided some form of subsidy.
“However, if we must compare Nigeria with its peers and neighboring countries, you will discover that Nigerians actually pay less for electricity than Zambia, Ghana, Zimbabwe and South Africa where they have better supply of electricity.”
He regretted that Nigerians have embraced a culture of waste in the power sector that makes people leave their lights bulbs and electricity appliances on when not in use.
Adesina said that prepaid meters and the entire infrastructure required to enhance power supply in Nigeria are not items one buys off the shelf.
“They have to be manufactured. No investors will just go and manufacture meters running into millions and put into shelves. There must be demand for it. The demand for meter is predicated on the fact that the price is right,” he noted.
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