The Federal Government has called of Electricity Distribution companies,(Discos) to justify the new tariff through quality services to consumers.
In what observers regard as the endorsement of the hike, the Minister Of Power, Babatunde Raji Fashola at the monthly sectoral meeting of major stakeholders in the power sector in Lagos yesterday said meters must be rolled out immediately to consumers to avoid estimated billing.
This is even as Fashola appealed for understanding among Nigerians protesting the increase in electricity tariff.
The Minister of Power said with the increase in tariff it is obligatory for the distribution companies to improve service delivery.
According to him, the main essence of the meeting is to discuss how service delivery can be enhanced, adding that electricity distribution companies (Discos) must roll out meters, install transformers and lines.
The minister who also reacted to the protests staged by labour unions all over the country over the increase in tariff, said he understands that people who have been disappointed over a long time would feel a sense of concern that again tariff has gone up.
Asked why an improvement in power supply did not come ahead of a tariff hike, he said:“I wish we could do that. But if consumers understood that power business is funded from finance from banks, they would probably understand why we did what we did.
He said no bank is going lend money to you if you can not show a recovery price. “This is the reason why we cannot have power first before tariff, because it has to be paid for.”
“The supplier of gas is not going supply unless he sees his cash. This is a painful thing. This is the difference about this business, the gas has to be put there, and it can’t even be stored.
“We are saying to the Discos now that they must improve services as it is in their best interest to do so ,because they have contractual obligations on many sides”.
He said before the advent of this government, some of these obligations were not adhered to but that the industry must move forward and problems must be solved as they come up.
The minister said as a government they are going to improve transmission just as they are also working with NNPC and Ministry of Petroleum Resources to improve gas supply.
He said Nigerians would see incremental output in electricity supply if everybody allows for stability in the system, saying that once the system is shocked, gas supply would be on hold, everybody would be put on hold, generation companies (Gencos) would be on hold, contracts would stop, and debt would continue to multiply. He said people must understand how fragile the system is.
Olusola Bello
