An energy expert, Mr. Gabriel Adiele, has said that to reduce the N1.538 trillion electricity bill charged to Nigerians by electricity distribution companies some strategies should be implemented.

He stated that as a short-term solution, there should be increase in energy efficiency, adding that there should be promotion of energy-efficient practices and technologies, such as using energy-efficient light bulbs and appliances.

He added that there should be tariff reform and the implementation of a cost-reflective tariff structure that incentivises energy efficiency and reduces wastage.

According to him, metering and billing reform should be embarked upon so as to ensure accurate metering and billing systems to eliminate estimated billing and reduce energy costs.

The Nigerian Electricity Regulatory Commission in its first, second and third quarter 2024 reports showed that electricity distribution companies billed electricity users in Nigeria N1.538 trillion.

The reports showed that in the first quarter (January- March) DisCos billed Nigerians N368.65 billion; second quarter (April – June), N543.64 billion and third quarter (July to September) N543.64 billion, totaling N1.538 trillion. The fourth quarter report had yet to be released as at press time.

Adiele, in an interview with New Telegraph over the weekend, also suggested that as medium-term solutions, there should be investment in grid modernisation and upgrade of the national grid infrastructure to reduce transmission losses and increase efficiency.

He called for the promotion of renewable energy and that critical stakeholders should encourage the development and use of renewable energy sources, such as solar and wind power.

He also canvassed for energy storage solutions including the implementation of energy storage solutions, such as batteries, to reduce energy waste and provide backup power during outages.

As long-term solutions, the government should develop a national energy plan and create a comprehensive national energy plan that prioritises energy efficiency, renewable energy, and grid modernisation.

He said: “There should be an increase of private sector participation; encouragement of private sector investment in the energy sector to promote competition and innovation.

“Government should embark on energy sector reform. Reforms should be implemented to promote transparency, accountability, and efficiency in the energy sector.

“Some consumer-focused solutions should be adopted. There should be energy education and awareness. Consumers should be educated on energy-efficient practices and the benefits of renewable energy.

“There should be the incentivization of energy efficiency. Incentives should be offered such as rebates or tax credits, for consumers who adopt energy-efficient practices and technologies.

“Vulnerable consumers should be protected. The government should implement measures to protect vulneable consumers, such as lowincome households, from high energy costs.

By implementing these strategies, Nigerian electricity users can reduce their energy costs, promote energy efficiency, and contribute to a more sustainable energy future.”

Energy sector commentator, Julius Ibeme, in an interview with New Telegraph, also said that the high energy costs incurred by Nigerians had far-reaching effects on the economy, businesses, households, and individuals.

He stated that it had economic effects, which includes inflation. He noted that high energy costs contributed to inflation, as businesses pass on the increased costs to consumers through higher prices of goods and services.

He further said that there was reduced competitiveness, adding that high energy costs made Nigerian businesses less competitive in the global market, as they struggle to maintain profitability amidst high energy expenses.

According to him, another implication is slowed economic growth. He explained that the high cost of energy can slow down economic growth, as businesses and industries are discouraged from investing in new projects or expanding existing ones.

He said: “High energy cost has business effects. One effect is increased operating costs: High energy costs increase the operating costs of businesses, reducing their profit margins and making it challenging to sustain operations.

“Another effect is reduced productivity: Frequent power outages and high energy costs can reduce productivity, as businesses are forced to rely on expensive alternative energy sources or endure prolonged periods of downtime.

“There is also the effect of closure of businesses: In extreme cases, high energy costs can lead to the closure of businesses, particularly small and medium-sized enterprises (SMEs) that are more vulnerable to energy price fluctuations.

“It also has household effects such as increased energy expenditure: High enegy costs increase the energy expenditure of households, reducing their disposable income and forcing them to make difficult choices between energy consumption and other essential expenses.

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