Electricity generation companies have called on the Nigerian Electricity Regulatory Commission to urgently review electricity tariffs following the Federal Government’s recent increase in the domestic base price of gas, warning that delays could worsen liquidity challenges and distortions across the power sector.
The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, said operators were less concerned about the increase in gas prices itself, but more worried about regulatory delays in adjusting tariffs to accommodate the new cost reality.
Ogaji, speaking in an interview with our correspondent on Monday, described gas as a “pass-through cost” that must be captured transparently in tariff computations. She said, “Gas price, whether it is raised to $10, is not really our problem.
Gas is a feedstock and a pass-through cost. So if the regulator in the power sector is comfortable with the increase, it is not a problem for us because whatever we are charged, we pass it down to consumers.
