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.
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