Abuja - The price of gas to power plants in Nigeria may be increased in the nearest future and this may lead to a total review of electricity tariffs across the country, the federal government has said.
The Minister of Power, Prof. Chinedu Nebo, disclosed this to the chief executives of power firms in Abuja on Thursday at the headquarters of the Nigerian Electricity Regulatory Commission (NERC), during a facility tour.
He said gas-to-power price might rise from its current $1.5 to $2 mbtu and this may affect the tariffs on electricity.
Nebo’s statement was prompted by complaints made by the power firms that have been contending with huge revenue losses since the sector was privatised.
The minister said: “There are private people who want to produce gas too, and they are saying that if they can be assured of even $2 as opposed to $1.5, they will be able to develop their gas and make sure that it get to our Gencos.
“We need to look into all these and when that is done I believe we will now need to review the entire tariff structure so that there will be the requisite amount of money coming in so as to compensate for that increase.”
He informed the chief executives of power generation companies, who were at a meeting with NERC, that measures to sustain growth in gas supply to their plants were being worked out, hence the need for tolerance.
“Bear with us as we work through these teething problems and as NERC does everything possible to make sure that you are happy, transmission is happy, distribution is happy and those who are at the receiving end are happy. I also want to assure you that every effort is being made to make sure that you have gas.
“I have been able to hold series of meetings with the Minister of Petroleum Resources and it has come to a point where we said, if need be, we will get some gas from the export portion and everybody has agreed that every measure must be taken to make sure that you have enough gas,” Nebo said.
For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page.