BEVERLY HILLS, February 18, (THEWILL) – The 11 electricity distribution companies, discos, in the country under the auspices of the Association of Nigerian Electricity Distributors, ANED, have reacted to the resolution of the Senate, calling for a suspension of the recent increment in electricity tariff.
The discos cautioned that suspending the implementation of the tariff would leave the country in continued darkness and diminish the prospects of growth of the economy. It stressed that the new tariff would guarantee adequate investments in the sector, which would ultimately lead to a reduction in tariff in the future.
Sounding this warning in a statement issued on Wednesday, ANED said: “The Senate on Tuesday, February 16, 2016 passed a resolution directing the Nigeria Electricity Regulatory Commission (NERC) to suspend the recently-implemented electricity tariff (MYTO-2015).
“However, implementation of this resolution is not without consequences and the following are a few of them. A market priced tariff is a fundamental requirement under the agreements signed between distribution company (disco) operators in the Nigerian Electricity Supply Industry (NESI) and the Bureau for Public Enterprises (BPE), raising the concern for sanctity of contract.
“Such a failure will be at a price that the government can ill-afford in these times of die economic challenges,” the association warned.
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