- No Cost Reflective Tariff, No Constant Electricity
A firm, Chibek Instruments Limited, has urged the government and other stakeholders in the nation’s Power sector to explore cost-reflective tariffs to get regular power supply.
Its Chief Executive Officer (CEO) Charles Ibe said unless this is done, it would be difficult to solve liquidity challenge and daily rejection of transmitted load by Distribution Companies (DISCOs).
Ibe said that a cost-reflective tariff would reflect the true cost of electricity supply and remove reliance on government subsidies.
He said: “The day the Power sector will turn the corner is when the sector is run in a cost-reflective manner.
“At midday, when industrial plants are working, they will be happy to buy electricity at a higher cost because they are producing with it. But when you go home to rest, you will need a cheaper cost.
“During the day, when the demand for electricity is high and the Federal Government allows flexibility of rates, it will meet the energy needs of the country at a faster pace and this will encourage production.”
Ibe said Chibek Instruments had attained 70 per cent completion of a lithium base integration plant, which could help the Federal Government to solve the national power challenge.
He said: “Our system can help the government to get off the grid during the day, thereby making power available for industrial users.
“We are bringing a smarter material called lithium iron. One of the things that make the electric motor possible is lithium iron. The technology we are bringing into the market is a hybrid system. We harness energy from different sources, ranging from solar, generator and electricity.
“The system will store electricity effectively and use it to power facilities automatically. We are also building capacity to be able to manufacture this system in Nigeria. Currently, our facility is 70 per cent ready. We are going to be the first African country to be a lithium base integration plant.
“The first phase of the investment is running into N7 billion, and this is just the beginning. To produce a lithium battery is a mega project. Unlike any other manufacturing system, you have components from different countries for manufacturers.”