The Jos Electricity Distribution Company (JEDC), in charge of distributing power to Plateau, Gombe, Benue and Bauchi States, is proposing 10.5 percent tariff increase.
Oluwashola Ajala, Head, Corporate Planning and Strategy, disclosed this on Wednesday, during customers’ consultative forum organised by JEDC in Jos.
Ajala explained that it is important to increase tariff, as it will lead to more investors showing interest in the power sector, raise competition and eventually crash electricity tariff.
He also said that the tariff hike has become necessary, as the federal government, which has been subsidising cost of power, has said it will no longer do so.
He noted that government argued that it needs to channel such funds to more critical aspects of the economy.
The corporate head further explained that increase in the cost of power generation is also another factor responsible for the hike in electricity tariff.
According to him, the increase in tariff will also help in increasing metering, creating new distribution substations and expanding network.
The JEDC official added that distribution companies (DISCOS) are not enjoying the subsidy from the government, which he claimed is being paid to the electricity generating companies (GENCOS).
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