Tariff reversal Discos threatens Nigerians should prepare for regular blackouts

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Investors in the power sector have declared that they will not pull out of the industry despite the recent judgment by the Federal High Court, which directed the Nigerian Electricity Regulatory Commission (NERC) to reverse the 45% increase in electricity tariffs but they have told Nigerians to prepare for regular blackouts as a result, The Punch reports.
The Executive Director, Association of National Electricity Distributors (ANED), Mr. Sunday Oduntan stated that if the courts insisted on reversing the increase in tariffs, Nigerians should be ready to return to the use of generators as a major source of electricity. He also stressed that any attempt to implement the reduction in electricity rates by 45% would lead to a total collapse of the sector as the distribution companies (Discos) collect tariffs not just for themselves alone but on behalf of the whole value chain. He however insisted that the Discos would not be pulling out.
The Acting Chief Executive Officer, NERC, Dr. Tony Akah, also admitted that the reversal in tariff would impact negatively on the power distribution companies in particular and on the sector in general. He said, “There is no doubt that it is going to be inimical to the development of the power sector and it will have a ripple effect on the whole economic development of this country. But rest assured that as soon as we get the full content, we are going to make appropriate communication to that effect.”

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