Despite COVID-19, FG Insists on Introducing New Electricity Tariffs July 1
Nigerians will by July 1 witness an increase in electricity tariffs, the Minister of Power, Mr. Sale Mamman, said Tuesday.
Mamman said government will go ahead to effect the new increase despite opposition.
Speaking on the occasion of the Investigative Public Hearing on Power Sector Recovery Plan and the Impact on COVID-19 Pandemic, held by the Senate Committee on Power, the Minister said the coronavirus had affected the plan to reposition the electricity market for financial sustainability.
He said the plan for tariff review by the Nigerian Electricity Regulatory Commission (NERC) in April was affected by the coronavirus pandemic.
He said that the coronavirus has affected all sectors of the economy and not just the health sector.
According to him, “The impact of this means the subsidy being incurred in maintaining the current tariff level had to be maintained till July 2020 when the proposed tariff review will be implemented.
“The challenge we are currently facing in the development and expansion of our transmission line is budget and release of federal government’s commitment in the estimated sum of N32 billion, primarily for Right of Way acquisition and environmental impact mitigation. The fund should be provided for in the 2020, 2021 and 2022 Appropriations of the Ministry of Power” .
“Indeed, the prevalence of the pandemic has already reduced productivity due to the strategy adopted globally to contain it. This by default affects the purchasing power of consumers and the demand for electricity in general.
“The current situation in the Nigerian power sector is that a lot of capital investment is being made, most of which is dependent on donor funding, loans and budgetary allocation. For projects that we have already secured their funding, we do not expect any adverse effect”.
Mamman said government will go ahead to effect the new increase despite opposition.
Speaking on the occasion of the Investigative Public Hearing on Power Sector Recovery Plan and the Impact on COVID-19 Pandemic, held by the Senate Committee on Power, the Minister said the coronavirus had affected the plan to reposition the electricity market for financial sustainability.
He said the plan for tariff review by the Nigerian Electricity Regulatory Commission (NERC) in April was affected by the coronavirus pandemic.
He said that the coronavirus has affected all sectors of the economy and not just the health sector.
According to him, “The impact of this means the subsidy being incurred in maintaining the current tariff level had to be maintained till July 2020 when the proposed tariff review will be implemented.
“The challenge we are currently facing in the development and expansion of our transmission line is budget and release of federal government’s commitment in the estimated sum of N32 billion, primarily for Right of Way acquisition and environmental impact mitigation. The fund should be provided for in the 2020, 2021 and 2022 Appropriations of the Ministry of Power” .
“Indeed, the prevalence of the pandemic has already reduced productivity due to the strategy adopted globally to contain it. This by default affects the purchasing power of consumers and the demand for electricity in general.
“The current situation in the Nigerian power sector is that a lot of capital investment is being made, most of which is dependent on donor funding, loans and budgetary allocation. For projects that we have already secured their funding, we do not expect any adverse effect”.
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