ELECTRICITY distribution companies in Nigeria have
assured consumers of improved electricity supply as power generation
continues to increase from the generation companies.
The Association of Nigeria Electricity Distributors (ANED), in a atatement said the boost in power generation over the last few months meant electricity users were in for the best of time.
ANED in the statement issued in Abuja on Sunday by its Executive Director, Research and Advocacy, Mr. Sunday Oduntan said the attainment of 5,075MW go generated electricity had to be appreciated in the context of a sector that barely generated 2,000MW prior to the start of the sector reforms, a little over five years ago.
Regrating the removal of the Fixed Charges Oduntan said: “it constitutes a revenue risk to the operators, but it is a risk that we are prepared to take, as necessary to march in lockstep with our customers and loudly convey that that the sector’s players are making every kind of compromise possible to ensure that affordable but sustainable and appropriately priced power is delivered to your homes and businesses.”
Electricity generation in Nigeria last week hit an all-time high of 5,075MW, demonstrating the capacity of the sector to meet the country’s power needs, a major milestone in the drive to grow the nation’s economy and improve quality of life.
Nigeria’s growth has been crippled for too long by decades-old deficiencies in the power sector.
Private sector-driven efficiency and realistic market prices can, and are already giving the sector a new lease of life. According to Oduntan, the Distribution Companies (DisCos) will continue to do its best to distribute power that is transmitted to them.
“ANED and its members are sensitive to customer anxiety over the recent increase in electricity tariffs,” he said.
“We hereby provide our customers an assurance that the increase is no more than that which is necessary for critical improvement of an electricity infrastructure that has suffered decades of neglect. “The increase will help to mitigate the negative cashflow and revenue shortfalls that have bedeviled the sector since the handover of the assets to private operators and hindered the ability for generators to increase power supply, due to their inability to pay their gas suppliers.
“Presently, over two-thirds of power generated are from gas-fired plants”, he stated. He said with the increased investment that will occur, as a result of the ability of the operators to generate a credible cashflow that will, in turn, provide them with access to financing for investment in distribution, generation and transmission infrastructure, the cost of electricity supply and distribution will be reduced.
“This reduction, as a result of increased investment and efficiency gains, will result in lower tariffs for electricity customers,” he added.
The Association of Nigeria Electricity Distributors (ANED), in a atatement said the boost in power generation over the last few months meant electricity users were in for the best of time.
ANED in the statement issued in Abuja on Sunday by its Executive Director, Research and Advocacy, Mr. Sunday Oduntan said the attainment of 5,075MW go generated electricity had to be appreciated in the context of a sector that barely generated 2,000MW prior to the start of the sector reforms, a little over five years ago.
Regrating the removal of the Fixed Charges Oduntan said: “it constitutes a revenue risk to the operators, but it is a risk that we are prepared to take, as necessary to march in lockstep with our customers and loudly convey that that the sector’s players are making every kind of compromise possible to ensure that affordable but sustainable and appropriately priced power is delivered to your homes and businesses.”
Electricity generation in Nigeria last week hit an all-time high of 5,075MW, demonstrating the capacity of the sector to meet the country’s power needs, a major milestone in the drive to grow the nation’s economy and improve quality of life.
Nigeria’s growth has been crippled for too long by decades-old deficiencies in the power sector.
Private sector-driven efficiency and realistic market prices can, and are already giving the sector a new lease of life. According to Oduntan, the Distribution Companies (DisCos) will continue to do its best to distribute power that is transmitted to them.
“ANED and its members are sensitive to customer anxiety over the recent increase in electricity tariffs,” he said.
“We hereby provide our customers an assurance that the increase is no more than that which is necessary for critical improvement of an electricity infrastructure that has suffered decades of neglect. “The increase will help to mitigate the negative cashflow and revenue shortfalls that have bedeviled the sector since the handover of the assets to private operators and hindered the ability for generators to increase power supply, due to their inability to pay their gas suppliers.
“Presently, over two-thirds of power generated are from gas-fired plants”, he stated. He said with the increased investment that will occur, as a result of the ability of the operators to generate a credible cashflow that will, in turn, provide them with access to financing for investment in distribution, generation and transmission infrastructure, the cost of electricity supply and distribution will be reduced.
“This reduction, as a result of increased investment and efficiency gains, will result in lower tariffs for electricity customers,” he added.
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