The Abuja Electricity Distribution Company (AEDC) has disclosed that when the reviewed electricity tariff takes effect on April 1, most customers across its franchise states would record about 35 percent tariff increase.
The utility said the increase in tariff is needed to keep the sector operational and allow investments to improve the network.
The Managing Director of AEDC, Engr Ernest Mupwaya who briefed journalists in Abuja on Tuesday on the proposed tariff review said there is currently a huge subsidy in the power sector.
Mupwaya however cautioned that the subsidy could not go on forever as it was taking away resources that could have been used to improve education, health and other programmes of government.
He pointed out that with the new tariff, government support on tariff will drop from 54% to 29%, leaving 71% for the customers.
He explained that the current directive by Nigeria Electricity Regulatory Commission (NERC) requiring the Distribution Companies to remit 46% means government support was 54%.
He pointed that if the power sector could balance energy flow with payments received from customers, the Nigerian Electricity Supply Industry (NESI) would become sustainable.
He explained that the tariff has to be at the level that would attract investments to improve services in the sector.
While justifying why the propose tariff review should be given accelerated consideration, Engr. Mupwaya said, it would guarantee sufficient power supply, metering, massive investments in the network and improve service to the customers.
The AEDC boss said, the company needs a total of N43.02 billion investment in the network to guarantee stable and reliable power supply to its customers.
