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ED, ANED made this known in an interview with the Nation Newspaper
- Tariff not in line with the true cost of electricity
- Investors will shy away from the sector
The Executive Director, Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan has said, the current electricity tariff is not reflective of the true cost of electricity. He made this known in a telephone interview with The Nation Newspaper.
In his interview, he said, “For you to know what people should pay for electricity, you have to, first of all, know the cost of production”. He also explained, with the current tariff, investors will be wary of investing in the sector.
Speaking further he mentioned the of generation capacity and transmission infrastructure inadequacies as the major problems preventing growth in the sector. On the transmission grid, he said the grid “System collapses because of, the dilapidated nature of our transmission grid”. On generation capacity, he stated, “You cannot be giving 5,000Mw to 200million people. We need to build more power plants and increase generation. We need to have a mixed energy grid. Electricity should not depend on gas alone. We need to have solar, coal and all others”.
Mr Oduntan was critical of consumers as well as, government Ministries, Departments and Agencies (MDAs) for their roles in energy theft and the failure to pay for energy consumed. He advised the government to “make sure that the MDAs are also paying their bills because it is only a liquid power that can have money to invest in generation, transmission and distribution”.