The price of gas to power plants may be increased in the nearest future and this will likely lead to the review of electricity tariffs across the country, the Federal Government has said.
It said the price of gas to the power plants was...
likely to rise from the current $1.5 per million British thermal unit to $2mmbtu and that this might affect the electricity tariffs.
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 during a facility tour.
Nebo’s statement was prompted by complaints made by the power firms, which said they had been facing huge revenue losses since the sector was privatised.
The minister said, “There are private people who want to do 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 gets to our generation companies.
The electricity generation companies had raised the alarm that the huge revenue losses, which they often incurred, might mar the privatisation of the power sector.
Culled - Punch
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