SUN APRIL 07 2024-theGBJournal| Minister of Power, Adebayo Adelabu gave an overview of the ministry’s activities while appealing to the general public to be open-minded to the government’s activities and policies.
He assured the public that the President has a track record of success and will do well during this administration.
According to the Minister, the power sector needs an overhaul, and the present administration has taken the bold step to start the journey.
The Minister pointed out that Nigeria is in a subsidy regime where the government covers 67% of the cost of power production, transmission, and distribution, which consumes more than 10% of the National budget.
”This is a burden on the country’s meagre revenue,” he said.
He emphasized the need for consumer protection and that value for money is critical for consumers, and the Ministry is determined to keep its promise to them. In addressing the recent tariff increase, the Minister said the increase is only for consumers in the Band A category, which is only 15% of consumers, while other customers will continue to enjoy the government subsidy.
According to the Minister, the ministry intends to provide a cost-reflective tariff and gradually migrate other consumers to the band A grade over three years. These consumers will enjoy 20 to 24 hours of electricity per day, and that, realistically, it is cheaper at N225 per kilowatt than diesel and generating sets.
Chief Adelabu said the sector currently needs to be more attractive to investors. There is an infrastructure deficit, which includes the availability of gas and the generation, transmission, and distribution of power.
”These must be addressed for the sector to grow and benefit Nigerians. He also mentioned that a metering gap needs to be bridged and that all the issues stated can only be addressed by the generation of funds.”
He mentioned that the sector had been decentralized and that consumer protection was vital, 20 hours must be achieved as promised, and anything else would attract consequences for the distribution company.
He also mentioned that Nigerians have to learn energy consumption management while getting value for money spent. At the same time, the Ministry, on its part, is rounding up generation, such as the renewable energy and the Zungeru projects.
”The Ministry is also working hard to find creative ways to cut vandalism while installing new lines and injection lines and investing in advocacy to educate consumers,” the Minister noted.
Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) has directed all Electricity Distribution Companies (DisCos) to provide as much clarity as possible to all affected customers as they begin the implementation of the April 2024 supplementary multi-year tariff order.
The DisCos are hereby directed to implement the following updates:
-All DisCos shall ensure that ONLY the newly approved Band A feeders listed in their April 2024 supplementary orders are maintained as band A for the purpose of vending to prepaid customers and billing for post paid customers on their networks.
-All DisCos are required to immediately post on their websites the schedule of approved Band A feeders that have been affected by the rate review.
-All DisCos shall set up a portal by 10th April 2024 on their website that allows all customers to check their current Bands by entering their meter or account numbers.
-All customers wrongly billed at the new rate should be refunded through energy tokens no later than Thursday 11th April 2024, and file evidence of compliance with the Commission by 12th April 2024.
-The Commission shall monitor compliance with the requirements listed above and shall continue to provide support to all stakeholders as required.
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