Two days after the Nigerian Electricity Regulatory Commission (NERC) approved increase of electricity tariff for customers under the Band A classification, the Federal Government has hinted that a similar measure would be extended to others.


Speaking at a briefing in Abuja on Friday, Minister of Power, Adebayo Adelabu, said the recent increase in electricity tariff is a pilot in phasing out of electricity subsidy in the country.


He said the government plans to remove all subsidies in the sector to allow the thriving of investment in the power sector.

The Minister said: “This tariff review is in conformity with our policy thrust of maintaining a subsidized pricing regime in the short run or the short term with a transition plan to achieve a full cost reflective tariff for over a period of, let us say three years. I have mentioned it in a couple of media briefings that it is because of government sensitivity to the pains of our people that we will not make us migrate fully into a cost reflective tariff or to remove subsidy 100 percent in the power sector like it was done in oil and gas sector.”

“We are not ready to aggravate the sufferings any longer which is why we said it must be a journey rather than a destination and the journey starts from now on, that we should do a gradual migration from the subsidy regime to a full cost reflective regime and we must start with some customers.

“This is more like a pilot for us at the Ministry of Power and our agencies. It is like a proof of concept that those that have the infrastructure sufficient enough to deliver stable power of enjoying 20 hours of light to be the ones to get tariff add.”


The Minister added that the N225 kilowatt per hour Band A customers are charged as little in relative to the N500 they pay for alternative energy like diesel and others.

While explaining that Nigeria is experiencing a subsidy pricing regime where the government provides a large portion of the generation, transmission and distribution cost, he said the government was formerly subsidising 67 percent of the cost of electricity.



“The government would have paid N2.9tr for 2024. This is more than 10 percent of the national budget. It will be insensitive on our part to compel the government to pay such subsidy when we have other competing issues the government needs to fund under pau its of funds we have.”

ogododo:
Two days after the Nigerian Electricity Regulatory Commission (NERC) approved increase of electricity tariff for customers under the Band A classification, the Federal Government has hinted that a similar measure would be extended to others.


Speaking at a briefing in Abuja on Friday, Minister of Power, Adebayo Adelabu, said the recent increase in electricity tariff is a pilot in phasing out of electricity subsidy in the country.


He said the government plans to remove all subsidies in the sector to allow the thriving of investment in the power sector.

The Minister said: “This tariff review is in conformity with our policy thrust of maintaining a subsidized pricing regime in the short run or the short term with a transition plan to achieve a full cost reflective tariff for over a period of, let us say three years. I have mentioned it in a couple of media briefings that it is because of government sensitivity to the pains of our people that we will not make us migrate fully into a cost reflective tariff or to remove subsidy 100 percent in the power sector like it was done in oil and gas sector.”

“We are not ready to aggravate the sufferings any longer which is why we said it must be a journey rather than a destination and the journey starts from now on, that we should do a gradual migration from the subsidy regime to a full cost reflective regime and we must start with some customers.

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“This is more like a pilot for us at the Ministry of Power and our agencies. It is like a proof of concept that those that have the infrastructure sufficient enough to deliver stable power of enjoying 20 hours of light to be the ones to get tariff add.”


The Minister added that the N225 kilowatt per hour Band A customers are charged as little in relative to the N500 they pay for alternative energy like diesel and others.

While explaining that Nigeria is experiencing a subsidy pricing regime where the government provides a large portion of the generation, transmission and distribution cost, he said the government was formerly subsidising 67 percent of the cost of electricity.



“The government would have paid N2.9tr for 2024. This is more than 10 percent of the national budget. It will be insensitive on our part to compel the government to pay such subsidy when we have other competing issues the government needs to fund under pau its of funds we have.”

https://dailytrust.com/breaking-expect-more-increase-in-electricity-tariff-fg-tells-nigerians/

iwaeda:

May be N500 per KWatthour will be a good start. APC will make hand-out too good to be rejected. Just paste APC card by your metres.

“The government would have paid N2.9tr for 2024. This is more than 10 percent of the national budget. It will be insensitive on our part to compel the government to pay such subsidy when we have other competing issues the government needs to fund under pau its of funds we have.”

https://dailytrust.com/breaking-expect-more-increase-in-electricity-tariff-fg-tells-nigerians/

NO. OF HRS TO CONSUME 1 UNIT - [1KWH] WORTH OF ELECTRICITY which now costs N225 on BAND A:

Air-Conditioner
1.5HP: 53.4mins
1HP: 1hr 34mins
2HP: 40.2mins
4HP: 20.4mins

Blender (Medium): 2hrs 22mins

Cooker
1 Plate: 40.2mins
2 Plates + Oven: 18mins
2 Plates: 24mins
4 Plates: 13.2mins

Fan
Ceiling: 11hrs 76mins
Standing: 14hrs 29mins
Table: 25hrs

Kettle
Medium: 27mins
Small: 32.4mins

Lighting Bulb
Tungsten Filament: 16hrs 67mins
Energy Saving: 66hrs 67mins

Microwave (Medium): 1hr 11mins

Pressing Iron
Dry: 49.8mins
Steam: 30mins

Refrigerator
Large: 7hrs 14mins
Medium: 10hrs
Small: 12hrs 5mins

TV
300W: 3hrs 33mins
100W: 10hrs

Toaster
Large: 42.6mins
Medium: 1hr
Small: 1hr 33mins

Washing Machine
Spinning, Dryer: 28.8mins
Spinning: 2hrs 7mins

Water Dispenser: 1hr 43mins

{Source: Ikeja electricity}

PressMyButton:
100% in support of FG. FG has been paying subsidy for darkness for decades. This is one of the many evils of PDP whereby incompetent cronies of government were sold NEPA while government keeps paying billions in subsidy to private owners to cover for their operating loss. Which sensible country does that?

Ogonimilitant:
Interesting times. God bless our dear Daddy.
President Bola Ahmed Tinubu.

We must teach Igbos lesson of their life.

Slytiger:

I did not even know that electricity was being subsidized untik now. When we hear subsidy, all we are think off is gasoline products.

Now I have have learnt dollars and electricity are being subsidized. The discos have been socializing the cost but capitalize the profit. Lol.

SalamRushdie:
From where ? Which new power plant have you commissioned?

PressMyButton:

Maybe the people of Aba being supplied by Geometric power are equally zombies but i can assure you that you're the biggest of all.

SalamRushdie:


So you beleive Geometrics is supplying Aba ? You see why Dem dey call una zombie?

iwaeda:

May be N500 per KWatthour will be a good start. APC will make hand-out too good to be rejected. Just paste APC card by your metres.

Wainey:
that wasn't what was said sha.

But make this govt allow us enjoy the inflation weh don deh come down na, at least enjoying it for 2months before u fire us anoda one. This back to back wickedness no funny abeg