IBEDC BOSS JUSTIFIES PROPOSED UPWARD REVIEW OF ELECTRICITY TARIFF

IBEDC BOSS JUSTIFIES PROPOSED UPWARD REVIEW OF ELECTRICITY TARIFF

The Chief Executive Officer, Ibadan Electricity Distribution Company (IBEDC), Engr. John Ayodele, says an upward review of electricity tariffs will solve the challenges currently confronting the energy sector in Nigeria.

Ayodele stated this while speaking with the Nigeria News Agency on the sidelines of the public hearing, organised by the Nigerian Electricity Regulatory Commission (NERC).

NAN reports that the event was tagged: ‘Investments Towards Improvement of Power Supply and Quality Service in Nigeria’s Electricity Supply Industry’.

Also, UBA posts N89.1bn profit after tax in 2019.

He noted that for better service delivery and availability of energy for use by Nigerians, the review was necessary.

Ayodele said that the price of energy bought by the disco had been on the increase, apart from the loan from the Central Bank of Nigeria which, he said, had to be repaid.

He stated that a total of N38.9 billion was incurred in 2019 on energy loss, adding that between 2015 and 2019, average tariffs were not cost-effective.

The IBEDC CEO further said if the tariff was increased to reflect the reality in the energy industry, it would enable the discos to overhaul their facilities.

“The only way to solve the problems and save the electricity industry is to increase tariff.

“If tariff is not improved, then steady supply of energy will not be possible. Infrastructure will keep deteriorating; tariff shortfalls will keep accumulating; the industry will collapse due to illiquidity and IBEDC debt profile will continue to balloon.