Prepare for fresh electricity tariffs – Nigerian govt warns

Prepare for fresh electricity tariffs – Nigerian govt warns

 Minister of Power, Adebayo Adelabu, has warned Nigerians to
prepare for the introduction of tariffs that reflect the true costs of
electricity.

 

According to him, the country’s economy can no longer afford
to maintain electricity subsidies.

 

Adelabu stated this during a meeting with the Chairmen of
Nigeria’s Generating Companies in Abuja.

 

“We have to understand that our economy cannot sustain
subsidies indefinitely,” he said.The Federal Government presently has an outstanding debt
exceeding N4 trillion owed to Generating Companies (Gencos) for overdue subsidy
payments.

 

In its performance report for February, the Nigerian
Electricity Regulatory Commission (NERC) indicated that the average real tariff
stands at N116.18 per kilowatt-hour, whereas consumers are charged N88.2 per
kilowatt-hour.

 

In February, the subsidy cost per kilowatt-hour was
represented by the gap between the real tariff and the average collection,
which amounted to N27.97 kWh.

 

All NESI customers, except for the 15 percent classified as
Band A, benefit from a subsidy.

 

Adelabu’s spokesperson, Bolaji Tunji, quoted the minister as
telling the power generation companies that, “Citizens must pay the appropriate
price for the energy consumed.

 

“The Federal Government will continue to provide targeted
subsidies for economically disadvantaged Nigerians.”

 

Source: Prepare for fresh electricity tariffs – Nigerian govt warns

 - NigerianEye
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