The Minister of Power, Adebayo Adelabu has said that the administration is reviewing the implementation process for a cost-reflective electricity tariff.
He said this via his Twitter account on Monday, January 1.
The Minister decried the lack of liquidity which is a significant challenge in the electricity market. As a solution, he said the administration is reviewing the implementation process of a cost-reflective tariff while ensuring continued government subsidy for vulnerable members of society.
In his statement, he pledged that the Ministry of Power stands ready to steadfastly support the Electricity Turnaround Agenda outlined by President Bola Ahmed Tinubu.
A part of the statement read:
- “The lack of liquidity remains a significant challenge in the electricity market. We’re reviewing the implementation process of a cost-reflective tariff while ensuring continued government subsidy for vulnerable members of society.”
- “Over the Yuletide season, the Ministry, agencies, and Discos worked tirelessly to enhance power supply, acknowledging positive improvements. Our focus is now on taking decisive action to address critical challenges in the electricity sector.”
Recall that during his New Year broadcast earlier on Monday, President Tinubu said that the power sector is set to record some progress after some work had been put into the sector in the last seven months of 2023.
Transmission Company of Nigeria will be separated
According to him, the TCN will be reconstituted in the short term, separating Transmission services from System/Market operations.
Recall that in 2023, the Federal Government announced a possible separation of TCN with the Nigeria Labour Congress (NLC) speaking out against it, stating that it would be a mistake as the privatization of the generating companies and the distribution companies are yet to yield any real progress.
Grid management
Adelabu noted that in the medium to long term, regional grids will be established for effective management. He also highlighted the fact that to improve transmission infrastructure, the administration has reactivated the Presidential Power Initiative (Siemens Project) to strengthen the national grid.
Meanwhile, the Eastern and Western super grid projects will also be implemented to increase electricity supply to demand centres.
- Adelabu said that closing the meter gap is imperative, and initiatives like the World Bank programs and the Presidential Metering Initiatives will gain momentum noting that the Ministry will intervene in distribution infrastructure, supplying transformers to communities without burdening citizens financially.
- He also mentioned that rural electrification is a priority for the Tinubu administration, focusing on solar-powered mini/microgrids and streetlights while stating that collaborating closely with Discos and State Electricity Boards will align with local needs.
- The Minister pointed out that generating at installed capacity is a goal for government-owned plants, while private companies are encouraged to invest further in off-grid/distributed generation, utilizing renewables as a focal point.
- Tackling power theft and vandalism is paramount to the administration, noting that they have informed the National Security Adviser (NSA) of recorded cases, emphasizing the need for joint efforts to protect our assets. This national responsibility requires collective action to eliminate setbacks.
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Source: Nairametrics.com.
