Good news! Electricity generation and distribution firms have said the planned increase in the price of gas supplied to power plants may not lead to a direct rise in electricity tariffs across the country. According to them, reports of a possible rise in tariff due to gas price increase are not completely true, as they note that series of calculations are involved in the computation of electricity charges.
The current price of gas supplied to power generation companies is $1 per 1,000 standard cubic feet. This price, according to the Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mr. Andrew Yakubu, will soon be raised to $1.5 per 1000 SCF.
A senior official of the Abuja Electricity Distribution Company hinted that the Discos were not contemplating raising tariffs based on the plan to increase gas price. According to the official, “I don’t think the Discos are contemplating raising electricity tariffs based on the planned increase in gas price. Even if there is any such plan, I don’t think it will happen any time soon”.
The Chairman/CEO, NERC, Dr. Sam Amadi, had warned power firms that the commission would not grant their request to raise electricity tariffs unless they substantially improve on their service delivery.