The Chief Executive Officer, Association of Nigerian Electricity Distributors, Mr Azu Obiaya, in a recent interview with The Punch has reiterated that there is a need to address the tariff gap in the nation’s power sector.

He said; “The problem is that there is a commercial framework that is not working, and this commercial framework that is not working is not sustainable in terms of viability of the Discos as well as the larger Nigerian electricity supply industry.”

“Sooner is better than later in terms of resolution of this tariff gap. The Gencos right now are only being supported by the prepayment assurance guarantee, which is supposed to end at the end of this year.”

“Without that buffer, we are back to a much more challenging situation in which the Discos are unable to remit the kind of money that is necessary to make the market whole because again, the tariff gap exists. So, there is an urgent need for us to put our heads together in the sector and come up with a solution to this market shortfall situation.”

Source: The Punch