Fashola Explains Why Electricity Tariff Must Increase

Powerline

Minister of Power, Works and Housing Mr. Babatunde Fashola, has said that in no distant time, there will be an increase in the in electricity tariff following the Ministry of Petroleum’s interest to build certain critical pipelines across the country.
He noted that these pipelines will transport gas to the power plants that will add another 2,000 megawatts to the national grid within 12-15 months.
The former Governor of Lagos State explained that the tariff will cover cost of transformers, transportation, gas purchase, among others.
Fashola said, “By far the most complex challenge is the problem of tariff. It is complex because it is more in the hands of citizens than in the hands of Government.
“The role of Government is to set the tariff and in doing so, Government has committed to what is called a Multi-Year Tariff Order. This was done in order to attract investors to the market; otherwise we will not have achieved the privatization if the price of the product is not attractive to the investors.