The Managing Director and CEO of Jos Electricity Distribution Company (JED), Mr. Muhammed Gidado Modibbo has said that JED will pay a total deficit of 50 billion naira for the period of four years as subsidy to subsidize power for consumers of electricity.

The JED boss stated this in a media chat with Journalists while responding to the picketing of the Head Quarters of the Jos Distribution office in solidarity with the nationwide protest against activities of the management of electricity distribution companies.

Modibbo is quoted as saying that it became imperative to do so because the cost effective tariff that will attract any investor is ranging between 45-50 Naira per kilowatt hour of electricity and without subsidizing with 50 billion Naira, the cost of electricity will be unreasonably expensive for an average Nigerian to afford.

In his words, “we are trying to revamp a sector that has been neglected for over 50 years. Government no longer subsidize power, so we source for money to run the cost of distributing electricity in the country and you cannot have an investor, investing his money in a venture that will not yield profit.

However, we are conscious of the economic situation of an average Nigerian and that of the government. Government resources is dwindling by the day, therefore we have deemed it unfair to lump a price on consumers because it will be unfair to accept by an average Nigerian.

In other to avert lumping of electricity cost for an average Nigerian to pay, we agreed to work together with the regulator (government), to source for money to cushion the deficit for an average Nigerian, so that they can pay for consumption”.

He continued, “the actual cost of electricity today is not what is applied in the tariff because the Distribution Companies (DISCOS), has taken it upon themselves to cushion (subsidize) the effect of the tariff increase within the next 2-3 years and to recover the balance over the period of seven years and this in turn means that the actual cost reflective tariff is raging between 45-55 naira per kilowatt hour of electricity. But the government being a responsible government said that DISCOS cannot pass this responsibility to the consumers.

Thereby what can you ask the consumer to pay now and then differ the balance to be paid over a period of time. So in effect, this means that I am giving Nigerians my product on credit, in which he is going to make some certain payment today and then stretch the balance in a period of ten years. My commitment in all of this therefore is that JED is making a commitment of 50 billion naira over the next four years just to subsidise what Nigerians can pay”, Mr. Modibbo emphasized.

Consequently, journalists gathered that the effect of the new tariff is to provide an enabling environment to attract investors as no business man would want to invest money without making returns.

But, the MD’s of DISCOS have been running the power sector since it was privatized without profit. A situation the federal government found themselves with the old National Electric Power Authority (NEPA) and Power Holding Company of Nigeria (PHCN), before taking steps out of frustration to privatize the sector, Modibbo said.

In a related development, the Public Relation Officer of JED, Lubabatu Adamu Rabiu, has appealed to the general public to remain calm even as DISCOS is doing everything within its power to ensure that the public is carried along with the new adjustment.

In a press statement made available to our correspondent, Rabiu stated that, “The Jos Electricity Distribution Company wishes to inform the general public that JED regrets the inconvenience the upward review the electricity tariff might cause the public. While we intensify efforts to continue to dialogue with the federal government, we wish to state that we shall continue to collaborate with relevant agencies to ensure that we increase the distribution of power and to address issues of excessive or estimated bills. We also wish to state that the increase in tariff is a directive from the Ministry of Works, Power and Housing and not peculiar to Plateau state”.

She stated that JED will continue to deliberate with the various organs of Labour, such as the Nigeria Labour Congress (NLC), Trade Union Council (TUC), Civil Liberty Organization (CLO) and other stake holders, to ensure that consumers get value for what they pay.

The Jos Electricity Distribution Company is in charge of Plateau, Benue, Gombe and Bauchi State.

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Tariff hike: Plateau DISCOs to pay N50b in 4 years