The Minister of power, Mallam Saleh Mamman has said that the new electricity tariff increment would be effective as from July next month.
He announced this yesterday at an investigative public hearing on power recovery plan and the effect of Covid19 pandemic which was organized by the senate committee on power.
Mamman explained that the pandemic has affected the plans for the repositioning of the electricity marketing which is geared towards financial sustainability under the power sector recovery plan.
He noted that the regulators, following the completion of the meeting of tariff review, has initially planned to carry out a tariff review back in April, 2020.
Meanwhile, he said due to the Covid19 outbreak and customer consideration as regards the present situation on ground, the planned tariff review was delayed by three months.
He expressed that the effects of this means that the subsidy that was given in sustaining the present tariff plan had to be maintained till July 2020 when the planned tariff will be in place.
He said that the current problem they faced with now in the development and expansion of the transmission line is the environmental impact mitigation, budgeting and the Federal Government’s commitment in the estimated amount for the right of way acquisition, which is up to N32 billion.
He said that the fund will be made available for the Ministry of Power in 2020, 2021 and 2022.
He said that the Covid19 pandemic has negatively affect the economy of the country not just the health sector but virtually all sectors of the Nigerian economy.
He said that the virus has affects global productivity as a result of governments strategies to combat it.
He said as a result if all this measures, it has greatly affects consumer’s purchasing power and demand for electricity.
He said currently in the power sector, a lot of capital is being invested, most of which is gotten loans, donors and allocations from the budget.
He noted that for projects in which funding has been secured, will experience no adverse effects.
However, he explained that the Ministry is currently finding ways to spot projects that give room for counterpart funding as result of reduction in national revenue so as to deliver within the stated timelines.
He said this explains why they are hoping for the senators to approve additional funding for the implementation of many projects they are undertaking.
He mentioned that the power sector is currently struggling with the problem of infrastructural misalignment, market inefficiency, policy coordination and completion of power projects.