Adebayo Adelabu, the Minister of Power says electricity consumers on Band A may pay less than the approved rate of ₦225/kWh if the exchange rate falls below ₦1000 per dollar.
He made this known while appearing as a guest on Channel Television’s Politics Today.
Backing the increase, Adelabu argued that the amount being paid by the Band A customers is still cheaper when compared to the amount being spent on fuel.
“The tariff is flexible. I can tell you, if the naira gains more and the exchange rate comes down below N1,000 to a dollar, it must positively affect the tariff; and the tariff, even for Band A, will come down below the N225/kWh that we are currently charging.
“There are variable factors that go into composition of the tariff and we are not closing our eyes to it. We are publishing it, we are transparent, we are talking to Nigerians and all the power sector stakeholders. This administration is very serious and we are committed to transforming the sector,” Adelabu disclosed.
He further attributed the problems in the power sector to challenges left unsolved for a long time -50 years- which he claimed cannot be solved within a year in office.
“The problem we are having is an accumulated problem of over 50 years, it will not disappear in one year, but we’ve been making consistent and gradual progress,” he added.
He revealed further that. there is a six-month target of upgrading customers on other bands to Band A as power generation improves.
We reported, a week ago, that the Federal Government, through the Nigerian Electricity Regulatory Commission, has decided to stop the subsidy being paid on the electricity consumed by Band A customers. The decision led to an increase in the electricity tariff.
The consumers, at the present time, pay ₦225 per kWh as opposed to ₦66 per kWh being charged in the past.
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