Connect with us

Economy

Why appropriate pricing of electricity is necessary-Group

Published

on

Mr Sunday Oduntan, Executive Director, Research and Advocacy,  Association of Nigerian Electricity Distributors (ANED), says  there is need for appropriate electricity pricing in order to ensure an effective power-sector driven economy.

Oduntan told the News Agency of Nigeria in Lagos on Wednesday that it would be mischievous to ask DisCos to recapitalise without appropriate electricity pricing of the products.

He advised the Federal Government to focus more on the alignment of the power sector value chain, adding that the Federal Government had tried as far as the power sector was concerned.

“There are two types of alignments-commercial and technical.

“Commercial alignment means that you must be able to have the appropriate pricing of the product using other indices like foreign exchange, lending rate, inflation rate and with a view to making the sector commercially viable.

“What has been wrong with the sector all along is liquidity crisis. As far as the government is concerned, I believe they have done their best in the last four years but they still need to do more in the next four years,” he said

The DisCos spokesperson said the transmission grid needed to be strengthened, adding that there was need for more investment to improve the grid.

He said that lots of equipment had been dilapidated and it was  good to mention that the current government was trying its best to invest more in TCN.

“Issues that have to do with system collapse is simply an issue of weak transmission grid. Those who blame DisCos for the collapse are mischievous.

“As far as ANED and the Discos are concerned, we didn’t have problem with the power generating companies. What we are saying is that anything we are going to do in the power sector must be done in accordance with the law and due process.

“The law allows the minister to declare eligible customers. The same law is very clear at what point the determination will take place.

“So, the issue then has to do with when it is  done and not whether it can be done.

“Yes, it can be done, but it should be done at a time when the sector matures  beyond where it is.

” We believe in cooperating with government, we are not out to blame anybody.

“We are saying that we all need to work together. Let us collaborate and cooperate to ensure that we improve the power sector.

“We are not in disagreement with anybody; we are not against the power generating companies, Transmission Company of Nigeria and the government,’’ he said.

Advertisement
Comments

Pin It on Pinterest

Share This

Share This

Share this post with your friends!