The Abuja Electricity Distribution Company, AEDC said in the event of enforcement of cost reflective tariff electricity, electricity consumers in its franchise area must brace up for an increase of an average 35 per cent.
Ernest Mupwaya, the Managing director of Abuja Electricity Distribution Company who spoke on Tuesday in Abuja at an interactive forum, said Government support on tariff could reduce from 54 per cent to 29 per cent,adding that subsidy payment to consumed power is not sustainable.
Insisting that the sector would have improved significantly if the right tariff was in place, Mupwaya said an import duty of 45 per cent currently on meter remained a threat to metering of consumers.
Recall,as part of efforts to address concerns of estimated billing and scale up meter roll out, NERC had asked all Distribution Companies (DisCos) operating in the country to charge only N200 to N1, 872 per month for customers under the residential and commercial category that the utility companies fail to meter.
Mupwaya said while Aggregate, Technical and Commercial (AT & C) loses in the sector at take over during privateisation was over 50 per cent, the utility company has reduced loses to about 37 per cent.
He said improving the power sector was much more important than the gain government would immediately get from the import duties placed on meter, stressing that since local manufacturers are not able to immediately meet demand, government should develop a policy that would increase the import duty gradually to enable DisCos bridge the gap in metering.
According to him, the utility companies in the sector do not have control over quality of power and price, adding that though the sector was privatised, it is 100 per cent regulated.
Mupwaya said if the sector must be efficient, there was need to improve on inherent flaws in electricity as well as the matching tariff with service delivery.
He disclosed that DisCos only keep 25 per cent of collected revenue, stating that while tariff to Nigerian Bulk Electricity Trading (NBET) has grown to 134 per cent that of DisCos has seen only 16 per cent increase.
Mupwaya decried the unbankability of the sector due to inherent challenges deterring investors, as balance sheet of the industry can not woo investors.
He said DisCos are not benefiting from estimated bills, stating that it was difficult to reduce loses in areas where there are no meter.
HARRISON EDEH,ABUJA
