Tuesday, 15 December 2015

MINISTER of Power, Works and Housing Mr.
Babatunde Fashola, said Nigerians should expect
increase in electricity tariff in no distant time. This is
as he also indicated the Ministry of Petroleum has
signified their interest to build certain critical
pipelines to transport gas to the power plants that
will add another 2,000 mega watts to the national
grid within 12-15 months.
According to him, "By far the most complex
challenge is the problem of tariff. It is complex
because it is more in the hands of citizens than in the
hands of Government.
"The role of Government is to set the tariff and in
doing so, Government has committed to what is
called a Multi-Year Tariff Order. This was done in
order to attract investors to the market; otherwise we
will not have achieved the privatization if the price of
the product is not attractive to the investors.
"The tariff is the price of producing power. It covers
cost of generation, gas purchase, transportation,
transformers, staff costs and so on, disaggregated
and charged per kilowatt/hour to make the business
of power profitable.
"What Government did was to spread it over a
number of years so that the impact is not felt at once
but over a periodic incremental process. I know that
it has been a contentious matter, but I make this
fervent appeal to consumers to give us the benefit of
doubt, to forbear and accept it.
As regards transmission network, the Minister noted
that the amount of power that is available today is
slightly larger than the capacity which the
transmission network can support. He said, "We
have identified a total of 142 (One Hundred and forty-
two) projects of which 45 are at 50 percent level of
completion and about 22 (twenty-two) can be
completed within a year.
"The budget estimates are known and we intend to
aggressively pursue completion to increase the
carrying capacity from the generating companies,
GENCOs to the distribution companies, DISCOs.

0 comments:

Post a Comment

Kindly drop your Comment....

ution'