2020 To Reign In Higher Electricty Bills For Nigeria - Minister Of Power
By Iwedi Ojinmah 2 months ago
Many Nigerians are busy scratching their heads today. Especially so after they have just come out of a nation-wide blackout that cost the nation hundreds of millions of dollar in additional expenses based on to its citizens.
This is because the Federal Government is set to increase electricity tariffs as it expects the completion of power projects across the country according to the Minister of Power, Engr Saleh Mamma.
He informed the increase in electricity tariffs is inevitable in view of the rising cost of electricity generation in the country, adding that cost-ineffective tariff has a drawback on the operation of the energy distributors in the countryRelated: FGN, United State Trade And Development Agency, General Electric And NNPC Sign $1.1million Grant To Support Electricity Infrastructure Development In Nigeria
As we know, the sector is presently implementing a differential tariff regime for the eleven power distribution companies (DisCos), as well as ensuring that customers pay tariffs relative to their consumption of electricity, as specified by the Nigerian Electricity Regulatory Commission (NERC).
Mamman also shared: “As part of efforts to improve the supply of power to the Northern part of the country, a new 330 KVA line is about to be installed by the government. This, among other projects, would improve the supply of electricity in Nigeria. With the improvement in power supply, the increase in tariffs in the country was inevitable, because the cost of generating electricity must be met by the operators.”
An audit has recently revealed that the power distribution companies (DisCos) and other agencies are owing power generation firms (GenCos) over N1.3 trillion, stressing that collection and remittances have reduced below 30 per cent.
The sector, he noted, has introduced a tilted policy titled where 2,000 megawatts(Mw) of electricity is stranded as a result of a failure in the distribution chain and this needs to be addressed.