Electricity Tariff Hike Imminent


Sunday, December 22,  2019  /10:52AM  / By Akinola Ajibade of The Nation Newspaper/ Header Image Credit:  National Wire Nigeria 


The Federal Government is set to increase electricity tariffs as it expects the completion of power projects across the country, the Minister of Power, Engr Saleh Mamma, has said.


He said 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 country.


Currently, the sector is implementing differential tarrif regime for the eleven power distribution companies (DisCos), as well as ensuring that customers pay tarrifs relative to their consumption of electricity, as specified by the Nigerian Electricity Regulatory Commission (NERC).


In a document sighted by The Nation, the Minister said the government is installing a 330KVA line as part of efforts to improve  electricity supply in the North and other parts of the country.


Mamman said: "As part of efforts to improve 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 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."


He urged Nigerians to be more responsible, by paying their electricity bills, adding the government is taking various  measures, including the completion of going projects, to improve power supply.


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 policy titled: willing buyers and willing sellers, to double up supply of electricity to the consumers.


He said the policy intends to whistle down the supply value chain, where 2,000 megawatts(Mw) of electricity is stranded as a result of failure in the  distribution chain.



The post Electricity tariff hike imminent, says minister first appeared in The Nation Newspapers on December 20, 2019

 Proshare Nigeria Pvt. Ltd.

Related News

  1. Solving The Liquidity Crunch In The Nigerian Power Sector
  2. Wartsila Modular Block Solution to Modernise Power Generation in a Malian Gold Mine
  3. Power: Discos Remain The Weakest Link
  4. Fixing Nigeria's Power Problems Needs New Thinking - Wale Yusuff
  5. Transcorp Consortium Selected As Preferred Bidder For Afam Electricity Generation Company
  6. Is Bill Gates Right On Energy Investing?
  7. Experts Emphasize Need for Adequate Financing of the Power Sector
  8. Cleantech Is Coming Of Age
  9. Ikeja Electric Introduces E-Bills To Enhance Customer Experience
  10. Cost-reflective Electricity Tariffs Set To Take Effect in July 2020
  11. FG Mulls Repossession Of Discos
  12. Siemens Agreement: Game Changer or Same Old Story?
  13. Senegal: 2 X Solar PV Projects Totaling 60MW Reach Financial Close

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.


Related News