Expect Hike In Electricity Tariff Soon – Eko Disco Tells Consumers | Independent Newspapers Limited
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Expect Hike In Electricity Tariff Soon – Eko Disco Tells Consumers

Posted: Jun 16, 2015 at 12:15 am   /   by   /   comments (0)

By Phillip Oladunjoye  –  Lagos

 

The management of Eko Electricity Distribution Plc has said that it would adjust electricity tariffs to meet power supply within its network and reality of prevailing economic situation.

Chief Executive Officer of Eko Electricity Distribution Company, Mr. Oladele Amoda, disclosed this at the stakeholders’ consultative forum in Lagos.

Amoda said that the essence of the forum was to rub minds with customers within its network on the need for the company to adjust its electricity tariff to be more cost reflective on its operations.

He said it was generally believed that nothing good comes easy, explaining that Eko Disco has invested so much to sustain and enhance operations towards improving services to customers.

“There is the need to sustain continuous investment that was why we have called for this meeting in order to consult with our customers on our proposed adjustment in tariff to partly meet the reality of the prevailing economic situation.

“The company is being run at a lost since inception because our investors had invested lots of money into the system, which has no cost reflective on the supply distribution chain to customers.

“When you look at the economic indices, there is high increase of dollars in terms of exchange rate, while other things had also gone up. Most of our equipments like transformers, cables, lines etc were been imported; the effect of rising in dollars had affected the cost of the materials. Gas supply is also another issue which has also increased drastically by the gas suppliers because they feel reluctant to sell gas to industrialists due to price differential,” he said.

Amoda noted that in the past, electricity prices had been lower based on the cost of running the electricity businesses but said that enough money has been spent now to improve the power supply.

He said that the prices in the past were suppose to cover cost but could not cover all the cost of losses, adding that the losses were partly because of the old wires in the network.

“There is no way we can have stable power supply without adjusting our tariff, because currently we are running at a loss.

“We expect government to stabilise the price of gas and other things like reducing the cost of importation of materials, which is the only way the adjustment could be recalled back.

“We cannot just commence an increase of electricity prices without informing the regulators which would in turn fix the appropriate tariffs pricing because it is ten years tariff plan. Amoda said.

The Eko electricity distribution company boss said that the company has earmark about N52 billion for metering of its customers in the next five years, adding that the management of the company also has the plan to deploy about 50,000 meters before the end of this year.

He said that over the next five years the company would have installed about 644,000 smart meters while about 250,000 new customers would have been connected with meters.