From DENNIS MERNYI, Abuja
Strong indications have emerged that investors in the recently privatized power sector may be forced to raise electricity tariff to reflect the cost of their huge investments.
Daily Sun has learnt that the move was part of the survival strategies of the investors who are reacting to the challenges ahead of the industry including huge capital investment needed to boost generation and transmission infrastructure.
The new private sector investors who bought the electricity distribution companies, DISCos, according to BPE are to inject a total of $1.8 billion into the operations of the companies. It was not clear, however, if the investors have so far paid this amount to effect the upward review of the electricity tariff to reflect the cost of generating and distributing electricity.
Though, Chairman of the Nigerian Electricity Regulatory Commission (NERC) Dr. Sam Amadi, had noted that the investors are in the business to make profit, they are bound to comply and adhere strictly to the rules authorising them to operate in Nigeria.
Amadi who spoke in Abuja recently when he hosted Energy Correspondents to a one-day seminar emphasised that NERC had from the beginning declared clearly the rules of the business to all investors before they invested. The idea, he explained was to ensure their investment is protected as well as address the concerns of the electricity consumer
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