High electricity costs overwhelm South South, South East businesses

With an average of about N70 billion spent on alternative energy, yearly, by local manufacturers due to poor power supply, many industrial firms and businesses in Southeast and South-south are struggling to sustain their operations, with many already suspending production, a survey by The Guardian has revealed.

According to the operators, the high cost of electricity is taking a toll on their businesses, as manufacturers allege that distribution companies and their cohorts are frustrating the eligible customer initiative.

Similarly, efforts to shift to gas consumption as an alternative source to automotive gas oil (AGO), otherwise known as diesel, have resulted in higher costs of equipment migration and inadequate infrastructure to transport gas to factories.

With operating costs already near 80 per cent in some instances, the pass-on effect is already being felt by consumers in the form of a hike in the price of goods and essential commodities.