Following the recent downward review of Band A electricity tariff from N209/Kwh to ₦160/kWh by the Enugu Electricity Regulatory Commission (EERC), the Association of Nigeria Energy Distributors (ANED) has called on state electricity regulators to adopt fully funded subsidy schemes.
ANED Managing Director Chief Sunday Oduntan made this call in a press statement on Thursday.
He urged the states to come up with timely disbursed subsidy payments for prompt settlement of market invoices and liquidity improvement.
He said, “A clear subsidy framework that is transparent, targeted, and fully funded.
” Timely disbursement of subsidy payments to enable prompt settlement of market invoices and improve market liquidity.”
Oduntan asked the states to pursue the subsidy payments in a manner that preserves the financial health of the market, encourages long-term investment, and avoids policies that could erode progress toward stable, reliable electricity for Nigerians
He said the recent tariff reduction by EERC to ₦160/kWh for Band A customers in Enugu State, without adequate coordination with NERC and or other market participants raises significant concerns for the stability and liquidity of the Nigerian Electricity Supply Industry (NESI).
According to him, since the release of the Tariff Order by EERC for Enugu State residents, the DisCos in other States have come under intense pressure and scrutiny to also reduce tariffs, while some customers have taken a position that they will no longer pay their electricity bills until tariffs are reduced.
(The Nation)
