The minister of Power, Works and Housing Mr. Babatunde Raji Fashola, said that Nigerians should expect an increase in electricity tariff next year, as the Government is doing all it can to improve the state of electricity and power in the country.
Mr Fashola also said that the Ministry of Petroleum under NNPC has expressed their interest to build special pipelines to transport gas to power plants that will ensure 24 hours gas supply to the plant which will will add another 2,000 mega watts of electricity to the national grid within the next 12-15 months.
He also expressed that “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.