Mr Oladele Amoda, Chief Executive Officer, Eko Electricity Distribution Company Plc (EKEDP) on Friday said that an attempt by the court to enforce reversal on electricity tariff would cause over 10,000 job loss.
Amoda who disclosed this at a the company’s function in conjunction with the USAID which is themed “Improving Gender Diversity in the Power Sector’’ in Lagos.
NAN recalls that the Lagos Federal High Court sitting in Lagos on July 13 annulled the 45 per cent electricity tariff hike.
Justice Mohammed Idris made the pronouncement while delivering judgment in a suit filed by a human rights lawyer, Toluwani Adebiyi, challenging the increment.
The judge described NERC’s action as “ultra vires, irrational, irregular and illegal”.
He said that electricity distribution companies have warned that if the court order, which directed the discos to revert to old tariff before the 45 per cent increment was introduced, obeyed, over 10,000 people would lose their jobs in the power sector.
According to him, that singular act (order) will affect the power sector negatively.
“Over 10,000 workers may be sacked while investors will not just shy away from investing in the sector, international donors will also be discouraged from participating in the sector.
“We have appealed the court order for stay of execution. Meanwhile, that singular act will affect the power sector negatively.
“Investors will be discouraged from further investment in the sector; donor agencies may have a rethink.
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“But the biggest one is that it may lead to job loss. More than 10,000 workers may lose their job if that judgment stands.
“Company cannot continue to run a business at a loss. If we are not making profit, at least we try to cover our cost.
“Another thing is that if we go to status quo as contained in the judgment, we will reintroduce fixed charges.
“Right now, the increase in tariff doesn’t cover our cost entirely. Many things have to be done by reinforcing our network which is dilapidated.
“With this judgment, banks may not offer us credit because they will realise we may not recover our cost,’ he said.
Amoda said that the company has disconnected all military formations within its network, adding that over N6 billion is been owe by the formations to date.
Amoda said that about N 18 billion is been owe by various electricity customers within the network which posed serious setback to their operations.
According to him, the debts owe all the eleven distribution companies by the Federal and States ministries, departments and agencies (MDAs) as well as the various military formation across the country has now risen to N90 billion.
“ Also indebted to the Discos for electricity supplied to them are some of the 774 local government secretariats, as well as the police and paramilitary barracks in the country.
“ The Nigerian Army was leading in the list of debtors to the Discos which affect the operational status of the 11 Discos,’’ he said.
The Eko Disco boss said that the companies is currently partnering with Egbin power station on 100 megawatts and Paras Energy and Natural Resources Development Limited on 60 megawatts to cushion supply within its operations.
He said that incessant gas vandalisation by militants in the Niger Delta has reduced its energy quota supply from the national grid from 500 megawatts to less than 200 megawatts.
