The Minister of Power, Engr Saleh Mamman said the Federal Government is set to increase electricity tariffs as it expects the completion of power projects across the country.
The increase in electricity tariffs, he said 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.
The sector is currently 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).
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.
“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.”
Mamman 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.
He noted, that the sector has introduced a policy titled: willing buyers and willing sellers, to double up supply of electricity to the consumers
According to him, the policy is intended to whittle down the supply value chain, where 2,000 megawatts (Mw) of electricity is stranded as a result of failure in the distribution chain.
The power distribution companies (DisCos) and other agencies owe power generation firms (GenCos) over N1.3 trillion, stressing that collection and remittances have reduced below 30 per cent.