The Managing Director, Century Power Generation Limited, Dr. Chukwueloka Umeh, has stated that the adoption of a cost reflective tariff regime, is the only way power Distribution Companies (DisCos) can attract the needed investment that would improve present infrastructure.
Umeh, who disclosed this at a virtual media briefing yesterday, said total deregulation of the power sector would motivate investors to invest capital into all areas of the broken value-chain and ensure consumers enjoy steady power supply.
He also noted that cost reflective tariffs also have a positive ripple effect on the power Generating companies (GenCos).
The Century Power boss said government’s role in the power sector should be limited to setting the regulations that would attract investment into the sector and not regulations that would stifling it.
He added: “Poor infrastructure is affecting the operating capacity of the DisCos which was why a large percentage of 200 million Nigerians are not included in the current national grid network. Out of the 9 million registered customers across the 11 DisCo networks in the country, only about half of them have meters.
Umeh explained that government’s initiative in allowing private firms provide meters for consumers, has allowed the Discos focus primarily on their core business.
According to him, “Total deregulation would attract more players into the sector as evident in the telecom sector revolution. The implementation of a new tariff by the electricity distribution companies was recently put on hold, a situation he said elongated epileptic power supply in the country.”