- The Commissioner (Market Rates and Competition), Dafe Akpeneye made this known in an interview with the Punch Newspaper
- He noted the inability of the DisCos to drive infrastructural improvement due to the limitations of the tariff
- He decried the unattractiveness of the sector to investors
In an interview with the Punch Newspaper, the Commissioner (Market Rates and Competition) Dafe Akpeneye, discussed the financial crunch in the electricity sector which is largely due to the tariff inadequacy. He explained that the DisCos, in addition to the non-cost reflective tariff, have to deal with a gap in cash inflow due to the rising cases of payment defaults, technical losses, and power theft.
He explained that these factors have greatly contributed to the liquidity crisis currently plaguing the Nigerian electricity sector. He stated that NERC has, despite its best effort, suffered from the lacking will of the government to implement new and cost-reflective electricity tariffs. He also mentioned the resistance from the DisCos and the consumers to the implementation of new tariffs.
The Commissioner stated that in due time, the implementation of a cost-reflective tariff will improve energy access as well as strengthen the electricity market by ensuring stable liquidity needed to improve the existing infrastructure.