An economic analyst and businessman, Simon Robert has said that raising electricity tariff is not the solution the Electricity Distribution Companies (DISCOs) need to turn their fortunes around.
Robert made this statement in an interview with The Tide in Port Harcourt at the weekend.
He noted that higher tariffs would only serve to reduce the number of bill-paying consumers.
The analyst explained that currently, only about half the electricity consumers have meters and that less than half that number pays their correct bills.
He further stated that already consumers were paying far higher than they consume with the estimated billing system.
According to him, “more than half the electricity consumers do not have meters and they are being made to pay estimated bills which is far higher than what they ought to pay if they were metered.”
Robert pointed out that many electricity consumers engage in meter by-pass, “because they already feel that they are paying far more than they should pay.”
He reasoned that higher tariffs would only serve to increase the number of people who indulge in meter by-pass, explaining that this would further throw the distribution companies’ balance sheets into the red.
Additionally, Robert observed that there is currently high rate of energy wastage, because consumers are of the belief that whether they use the power or not they would still be made to pay since they are made to pay estimated bills, far higher than what they ought to pay, adding that consumers also content with poor services.
He stated that the solution has improved service delivery and provision of pre-paid meters to at least 80 percent of electricity consumers.
He said, “pre-paid meter is key to solving the problem of estimated billing and wastages as well as meter by-pass. With pre-paid meters consumers will be happy to pay their bills because they know they have consumed the energy and the issue of by-pass will be solved.”

Tonye Nria-Dappa