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Friday, May 17, 2024

Customers not paying electricity bills are complaining of new tariff: Minister Adelabu

Mr Adelabu noted that the hike in the new tariff has led to a reduction in the energy cost for consumers in the band by 30 to 40 per cent.

• May 16, 2024
Adebayo Adelabu
Adebayo Adelabu

Adebayo Adelabu, minister of power, has said only those who are not paying electricity bills are complaining about the increase in the electricity tariff for Band A customers in the country.

The minister said “Manufacturers under Band A should have a lower Energy cost by now, thereby, reducing their cost of production. Except those that have not been paying for electricity in the past.

“We can also come together to compare notes with practical examples. But how this new tariff regime will increase the cost of production is not valid because I am in that industry too.”

Mr Adelabu noted that the hike in the new tariff has led to a reduction in the energy cost for consumers in the band by 30 to 40 per cent.

The minister spoke at the 8th Africa Energy marketplace forum held in Abuna on Thursday.

“Those on Band A, if they should do their arithmetic properly, to compare what they have been spending on energy provision from grid supply and energy generators put together, before the review of tariff, they have achieved nothing less than 30 to 40 per cent reduction in their total cost. That is the truth,” he said.

According to him, the electricity tariff was not targeted at improving Nigerians or worsening the already bad economic situation of high inflation rate and the naira losing value.

Mr Adelabu faulted the claim that the new tariff has increased the cost of production for manufacturers, leading to the high cost of goods and services.

“We are also electricity consumers, so we can attest to this fact. It is true that if you are in Band A, your bill would have doubled, if not more.

“But check out what you have been spending on your generator servicing, diesel and petroleum procurement, it would have down considerably.

“So the argument of this new tariff having the capacity of increasing the cost of production and raising the prices of goods and services is not logical,” he added.

Peoples Gazette recalls that the NERC had announced a hike in electricity tariff, although the development was immediately greeted by nationwide protests from the Nigeria Labour Congress (NLC).

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