To avert an increase of over 200 per cent in electricity tariff payable by residential consumers in the near future, the Federal Government has to intervene in the sector, power distribution companies have said.
According to them, the government’s intervention is vital in order to address the $2.57 billion revenue shortfall in the industry.
They insisted that the intervention could come in form of subsidy to consumers, access to foreign exchange by the companies, as well commercially reasonable financing for the Discos.
The firms explained that they were not willing and could not impose any increase in tariff on consumers, but maintained that to avoid a situation where the consumers would have to pay as high as almost $1 per kilowatt-hour as energy charge, the Federal Government must do something.
