Tuesday 22nd August, 2017
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Why Nigerians should pay more for electricity - NDPHC boss

Why Nigerians should pay more for electricity - NDPHC boss

Nigerians should brace up for in­crease in electric­ity tariffs if improvement in power supply across the country must be sus­tained, according to ma­jor energy provider, Ni­ger Delta Power Holding Company (NDPHC).
The Managing Direc­tor of NDPHC, Mr Jo­seph Chiedu Ugbo, made this point at the weekend when Acting President, Yemi Osinbajo, visited the firm’s Abuja headquarters to inspect the N-Power call centre domiciled there
Ugbo explained that most electricity consum­ers in major cities of the country spend as much N70 to privately generate a kilowatt hour of electricity whereas they pay less than N30 per kilowatt hour for public power supply.
He said that if consum­ers can pay even margin­ally more than the N30 per kilowatt hour, not up to N70, for public electric­ity, the power generating companies would be more able to meet up their pro­duction costs and provide more power to Nigerians.
The NDPHC boss not­ed that part of the chal­lenges is that Nigeria’s electricity supply system is still transitioning from a social service obligation to a market-based commod­ity production service, hence the need for every stakeholder to be more re­alistic.
“Part of the challenges we have is moving from social service through NEPA/PHCN because power was almost a social service before now; so, we are moving from social service to market com­modity.
“In market commod­ity, the cost must reflect market production and return on investment they have made. So, to that extent, that is why they are clamouring for tariff increase. If there is a gap between the tariff and the cost, somebody has to pay for it.
“ The question is: does government have the money to pay that? We all know the situation we are in now, we all know the cost of our mainstay - oil - going down. I think we have to be realistic about that.”

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