Speaking at a press conference in Lagos, John Donnachie, managing director and chief executive officer of Ibadan Electricity Distribution Company (IBEDC), said the Discos might have to offset the backlog of underinvestment which they inherited, by further borrowing as well as a slight increase in tariffs next year.
He said; “In order to address shortfall, we need to borrow, and there are discussions with CBN, the ministry of power and commercial banks, to look at a way to cover the liquidity challenge in the short term. We are confident that the issue (of shortfall) will be resolved, and over the ten years, it will all be made good. There are challenges here and now, the first two years. Yes, there was an increase, you see all sort of numbers being put out, but its only about 41 percent”.
“It still was not sufficient to cover all the cost of running the Discos. So you might find a first increase on the first of February, there might need to be a modest increase next year. But thereafter, things should stabilise. The long term outlook is a very positive one for Nigeria, as its got the resources of coal, gas, and oil” he added.
CULLED FROM: energymixreports.com