The Managing Director of Jos Electricity Distribution company (JED), Muhammed Modibo, has said the new energy bill of N24.00 per Kilo Watts (Kw) remains very moderate.
He also said the new rate has been highly subsidised, stressing that electricity consumers would have been paying N53.00 per Kw.
According to him: “If electricity consumers in Nigeria really understand the huge funds we private investors injected into the energy sector to guarantee constant electricity power supply, they will realise investors are doing them a favour by allowing them to pay N24.00 per Kw.”
Modibo spoke against the backdrop of picketing of the JED office over accusations of exploitation and over-billing.
Explaining the reasons for the new rate in Jos yesterday, Modibo said: “The commensurate amount to be paid by consumers is between N50.00 and N53.00 but we know Nigerians will not be able to pay this rate.
“That was why we agreed with the federal government to reduce it to as low as N24.00 per Kw.
“Even as consumers pay the new N24.00 rate, the private investors are still paying the balance of over N25.00 per Kw on behalf of the consumers. So it’s more like supplying electricity power to Nigerians on credit.”
He added: “You will realise that even with the new bill, I can’t recover the cost of production. It is impossible to recover what I sunk in to generate energy and supply it to consumers.
“And it’s like Nigerians have forgotten that the federal government is no longer funding the energy sector. It is now fully owned and run by private investors.
“For goodness sake, I invested in the energy sector as businessman. I must make profit from my investment.
“Consumers and organised labor need to understand that I’m not a charitable organisation.
“Initially, my contractual agreement with the federal government is to invest in the sector, improve on power generation and supply, ensure steady availability of electricity power in every home and recover my investment in five years period.
“But as it is now, the federal government has compelled me to extend my recovery of my investment to the next ten years instead of five years.
“That is the subsidy the consumers will enjoy under the new energy tariff regime.”
On the allegation of arbitrary electricity billing by marketers, the MD said: “Consumers will realise that if supply remains constant as it is currently, it will definitely result in consumption of more units of Kw at homes.
“It means Nigerians should learn how to save their energy supply. They should not waste it; don’t leave power on when you are not using it.”