Mr. Dele Ayodele, the deputy managing director, Ibadan Electricity Distribution Company (IBEDC) on Thursday identified poor funding and low tariff charged by Distribution Companies (DISCOs) as the bane of irregularities in the power sector.
Ayodele, who spoke to the News Agency of Nigeria (NAN) in Lagos, said that due to the lack of a cost-reflective tariff in the sector, funding has become a problem.
He alleged that some consumers want electricity supply for free, adding that the DISCOs were selling electricity to consumers at a loss.
“We are buying energy from other chains in the sector at a higher price, while selling to consumers at a very low tariff.
“If DISCOs have to make any reasonable profit, there should be a cost-reflective tariff.
“At present, the tariff is structured between N28 and N29 per kilowatt, while we are getting a kilowatt for close to N100.
“This is the more reason which the government should bridge the gap by subsidising it,’’ he said.
Ayodele said: “Government should look for how to bridge the widening gap by a form of subsidy because the DISCOs are not making any profit now.