Joseph Chiedu Ugbo, managing director of Niger Delta power holding company (NDPHC), says the call for increased electricity tariff is necessary for generating companies (GenCos) to meet their business cost and for the stability of the industry, The Cable reports.

He said customers, especially in commercial cities like Lagos and Abuja, pay as much as N70 to privately generate a kilowatt hour of electricity whereas they pay less than N30 per kilowatt hour for public power supply.

He reasoned that if consumers can pay even marginally more than the N30 per kilowatt hour, not up to N70, for public electricity, the power generating companies would be able to meet up their production costs and provide more power to Nigerians.

The NDPHC boss said the federal government’s intervention of N701 billion to power generators to ease liquidity problems up to December next year, was welcomed, while also commending the decision to allow energy providers sell electricity directly to heavy and industrial consumers.