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FG Unveils Plan To Increase Power Supply: Highlights Of Minister Of Power’s Press Briefing
FG Unveils Plan To Increase Power Supply: Highlights Of Minister Of Power’s Press Briefing....KINDLY READ THE FULL STORY HERE▶
The Minister of Power, Adebayo Adelabu, held a press briefing in Abuja, shedding light on the government’s efforts to enhance electricity provision across the country. Here are the key takeaways from the session:……READ ALSO
- Subsidy Reduction: Before the recent tariff adjustment, the government subsidized 67% of electricity costs, with an estimated subsidy cost of around 2.9 trillion Naira for 2024. However, following the tariff adjustment, the subsidy cost dropped significantly to approximately 1.4 trillion Naira, marking a reduction of over 50%.
- Band A Feeders: The tariff adjustment led to a reduction in Band A feeders, with only 481 remaining out of over 1,000. This change primarily affects Band A customers, who will no longer receive subsidies.
- Metering Gap: Currently, only slightly over 5 million out of approximately 12 million electricity customers in Nigeria are metered, leaving a gap of over 6 million customers without meters.
- Transition to Cost-Reflective Pricing: The government plans to gradually transition towards cost-reflective pricing over the next three years, aiming to ensure sustainable funding for the power sector.
- Infrastructure Challenges: Significant infrastructure challenges persist in the power sector, including obsolete equipment and vandalism, which hamper efforts to improve electricity provision.
- Sanctions for DisCos: Distribution Companies (DisCos) failing to provide 20 hours of supply to Band A consumers will face sanctions, incentivizing them to migrate other bands to Band A to charge higher tariffs.
- Energy Consumption Management: Despite some public skepticism, effective energy consumption management remains crucial for optimizing electricity provision.
- Ongoing Efforts: The government continues to focus on regulatory decentralization, investments in renewable energy, and infrastructure improvements to enhance power supply reliability and coverage nationwide.
Overall, the briefing outlined the government’s commitment to addressing challenges in the power sector and ensuring sustainable electricity provision for all Nigerians.
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