Dr. Tinuade Sanda, the Managing Director of Eko Electricity Distribution Company (EKEDC), has called for the immediate adjustment of electricity tariffs to prevent liquidity challenges in the energy sector. Sanda emphasized the necessity of aligning tariffs with the increasing price of gas, which has led to elevated service delivery costs.

Despite the ongoing review of the electricity tariff implementation process by the federal government, with a commitment to subsidizing power supply for vulnerable citizens, Sanda underscored the urgency of resetting tariffs to address the impact of rising gas prices on the industry.

Earlier this year, the government announced plans to unbundle the Transmission Company of Nigeria, separating Transmission services from System and Market operations. Minister of Power, Adebayo Adelabu, mentioned the eventual separation of Nigeria’s power transmission grid into regional grids for more effective management.

In response to reports of an electricity tariff hike at the beginning of the year, Electricity Distribution Companies (DisCos) clarified that no directive had been issued by the Nigerian Electricity Regulatory Commission for such an increase.

Speaking during a meeting with members of the Institute of Chartered Accountants of Nigeria (ICAN), led by its president, Dr. Innocent Okwuosa, Sanda expressed Eko DisCo’s commitment to innovative solutions for customer metering.

Dr. Okwuosa acknowledged the challenges facing the power distribution sector, emphasizing the need for the government to establish clear and consistent policies conducive to investment. He referenced ICAN’s opposition to the 2023 attempt by Discos to increase electricity tariffs, aligning with their mandate to ensure access to clean and affordable energy as outlined in Sustainable Development Goal 7 (SDG 7).

Highlighting a World Bank report indicating 85 million Nigerians lack access to grid electricity, Okwuosa stressed the importance of creating an environment that attracts investment to the sector through clear and consistent policies and incentives. He concluded by advocating for greater accountability and transparency in the power sector, recognizing its pivotal role in economic growth.

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