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B N W: Biafra Nigeria World News |
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NEPA plans upward review of tariff
ALTHOUGH the National Electric Power Authority (NEPA) is yet to satisfy consumer as regards steady power supply, it is already contemplating an upward review of tariff.
Disclosing this yesterday during the commissioning of 15 MVA Injection Station at Ajao and Magodo Housing Estate in Lagos, the authority's managing director, Mr. Joseph Makoju said the review had become inevitable to keep the organisation "afloat in the face of the present realities" in the country.
It was necessary to keep the organisation on its feet as a commercial entity considering the high operational costs to NEPA" unlike the welfarist status it had earned in the past prior to its ongoing "unbundling process".
Although he declined to state the exact charge and the time for implementation, Makoju said that would be effected when NEPA has achieved an acceptable level in service delivery to customers.
"I can't be precise about timing and tariff, but do not you expect that NEPA will continue to supply power without tariff increase in the future".
Makoju accepted that there was need to improve our services before asking customers to pay for the new billing regime.
"We have to improve supply, put more generation in, and improve the stability of power, because we discover that people don't mind paying more if the service is good."
Makoju said there had been improved revenue generation in the organisation due to increased drive to recover debt owed by customers, and called on government to accord power generation in the country a priority by ensuring adequate funding.
Putting the organisation's monthly revenue generation at N5.7 billion out of the targeted N6 billion, the NEPA boss said more would have been achieved if it had been adequately funded.
Describing half of the N44 billion capital budget for NEPA in 2004 fiscal year as under-funding, he called for more funding in the next budget to ensure that the organisation achieves 10,000 mw generation in 2010.
Makoju said towards that, plans had been put in place to ensure increased power generation through Independent Power Projects (IPP).
"We are taking great care to streamline the entry of Independent Power Projects (IPP) and we are putting on some clear guidelines that will regulate entry of new IPP," he explained.
He further said four new IPP were being expected on stream to boost the generation capacity expected in 2010.
"Installed capacity on the ground is about 4,500 mega watts(mw). We have just started four new power stations, Papalanto, Omotosho, Ajakuta and Delta of about 1,400 mw and new IPP will be coming up soon," he added.
In his welcome address, the Chief Operating Officer of Ikeja Distribution Zone, Mr. Reuben Okeke reiterated NEPA's resolve to provide uninterrupted power supply to customers, which informed his determination to install the transformers.
He said other areas under the distribution zone would be given similar attention in gradual manner.
Commending the reduced incidents of power outage being experienced in some areas in Ikeja zone, he urged customers to ensure prompt payment of their electricity bills "so that NEPA will serve them better."
Okeke, however, said subvention from government has stopped hence NEPA's revenue generation to run its activities.
He said the new commercial status of the organisation had made it necessary to account for 45 per cent power generation extended to Lagos, "which represents N6 billion monthly to government."
Pointing out the shortfall in revenue generation, Okeke maintained that "it is when revenue due to NEPA is paid by consumers that it would be able to serve them more efficiently".
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