By Adewale Sanyaolu
Strong indications emerged at the weekend that the 11 Electricity Distribution Companies (Discos) will post losses in the months ahead as alternative power solution providers have commenced aggressive marketing across various estates and households in a bid to crash their energy cost.
The move by the alternative power solution providers is the fallout of a recent hike in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC) which saw energy cost surge by over 240 per cent.
Some of the Estate residents who confirmed the development to Daily Sun in separate interviews said the deal by the alternative power solution providers appears reasonable and would help cut their energy cost by about 60 per cent
NERC had on April 6, 2024, increased electricity tariff for Band A customers from N66 per kilowatt hour to N225, representing over 240 per cent increase.
A statement by the NERC Executive Vice Chairman, Mr. Musiliu Oseni, however, assured that customers on Band B to E would not be impacted in the new tariff adjustment.
He disclosed that customers in Band A account for 15 per cent of the 12 million electricity consumers in the nation.
In Abuja, some of the estates that are already in talks with some of the alternative power solution providers are; Suncity Estate, River Park Estate, Hall 7 Estate, Crown Court Estate and Games Village.
In Lagos, the providers have initiated talks with the leadership of Magodo Residents Association, Labak Estate,Akora Estate, Parkview Estate and Banana Island.
Band A power consumer who stormed Facebook to express his frustration over the huge energy cost in recent weeks, Mr. Micheal Ndukwe, said after recharging N430,000 worth of electricity, he only got about 1,600 units which might not last him up to a month.
He added that prior to the increase, he recharges N150,000 in a month, lamenting that the recent hike in energy cost calls for consumption discipline.
Ndukwe who shared his energy purchase receipt online said; ‘‘My moment of truth is this evening N300,000 just gave me only 1,240 KWh worth of electricity prepaid recharge at N241 per KWh (VAT inclusive).
I need to buy at least an additional N130,000 worth of prepaid recharge or we go enjoy premium darkness for some days or sacrifice air-conditioners at night. This is not sustainable!
My initial spend in Band A was N150,000 per month. This tariff hike will take my spend to N430,000 without energy efficiency measures and going off-grid daily. I no do again! 300 per cent tariff hike is mean. After this purchase, it is strict off-grid routine.’’
Another respondent, Mazi Ezeakkonobu, said, he would rather prefer to go off-grid than spend so much on public power supply.
Another power consumer, Sammie Egbai, said he just installed solar and he enjoying it, adding that at this point, the Disco can disconnect supply to his apartment.
He advised consumers to get a good company to carry out an assessment of their energy needs,and with lithium batteries and the right number of panels, they should be good.
Confirming the latest trend to Daily Sun in a telephone interview at the weekend, Managing Director of Revocube Energies, a firm specialising in the deployment of renewable energy solution, Mr. Olanrewaju Ogunkunle, said in view of rising energy cost, solar power is the way to go.
He said his firm was already in talks with Magodo residents for bulk installation of solar solution, saying this would be cheaper for the subscribers as materials for installation would be bought in bulk as against dealing with individual homes.
He said the solar solution for businesses and homes would crash energy cost by 40 to 60 per cent respectively and was capable of power any appliance.
The Revocube boss said the cost of installation is not a one size fits all as they would first need to carry out an energy audit of the facility first before advising the client on the best solution/capacity to adopt for a business outfit or household.
Already, he said, his firm has a 50Kva office installation in Ikeja,40Kva residential installation in Ajah, 20Kva mobile construction powercube at Alausa and 212 Kwh storage bank in Ikeja GRA.