FG Endorses an Increase in The Electricity Tariff.
The Tinubu-led Federal Government has given the go-ahead to raise the price of power.
He did, however, add that since the government has chosen to keep subsidizing electricity this year, consumers might not be affected by the pricing increase because the government would be covering the difference.
Asked for how long the government will pay the subsidy,
Garba stated:
“Any time the government takes a decision on subsidy, we will take it into consideration in our next tariff.
“In other words, even if there is an upward review of the cost of electricity, the government will be absorbing the increase for as long as it can.”
You may also like to read this
https://thenewsnaija.com/2024/01/17/meet-burna-boys-grandfather-and-fela-kutis-manager-benson-idonije-photos/
The Abuja Electricity Distribution Company (AEDC) band’s non-maximum demand (MD) consumers would continue to pay N68.20 per kilowatt under the revised rate, according to the NERC chairman.
The cost-reflective tariff for the band has been impacted by the review; it was N88.47 in 2023 but is now N124.42 this year, representing an increase of N35.95 per kilowatt. This indicates that N35.95 has been subsidized by the government for consumers in that category.
Customers who are not in the maximum demand (MD) category and paid N67.48 last year will continue to pay the same amount this year under the Eko Electricity Distribution Company (EKEDC) band. Their cost-reflective price, however, increased this year from N89.03 to N114.84. This suggests an N25.81 per watt subsidy.
Garba did note, however, that due to each Distribution Company’s unique economic circumstances, the price per kilowatt of electricity varies.
He made it clear that although the prices listed on the NERC website represent what the discos are anticipated to charge in order to stay in business, the real amount that customers pay would be less due to government subsidies.
You may also like to read this
https://thenewsnaija.com/2024/01/09/akeredolus-funeral-is-scheduled-for-february-23-by-the-ondo-state-government/
The chairman stated:
“The commission has issued a tariff order that was just posted on our website yesterday (Tuesday).
“The tariff order contains the appropriate tariff the DisCos should be charging if they have to remain in business and the rules are very clear about the tariff order: some 110, some 120 and 130.
“Different DisCos have different parameters, efficiency levels and so on.
“But we have published what they should charge. We have also published the amount they are allowed to charge based on government policy because government has decided for now because of the living crisis, and so many things to in the meantime continue subsidizing electricity.
“So, if you check the order you will see that tariffs are not going up but the in the order, you will see what the DisCos should be charging.
“You can also see in the order the amount of subsidy the government will be providing to cover the gap, what they should charge that they are not allowed to charge without subsidy.”
The Post ‘FG Endorses an Increase in The Electricity Tariff’ initially appeared on Tori
