Multiple constraints in the power sector including low gas supply, foreign exchange rate, and inflation rate crushed the Multi Year Tariff Order (MYTO) 2015 implemented in 2016 causing a shortfall of N450 billion in the electricity market, Daily Trust reports.
The federal government said it has identified this problem and is working to resolve it through a tariff review by the Nigerian Electricity Regulatory Commission (NERC) and improved technical and operational capabilities captured in the Power Sector Recovery Programme (PSRP) launched earlier this year. With this, government said it is promising to give Nigerians 4,000 megawatts hour per hour (mwh/h) daily from year 2018. This will mean an average electricity supply of 15 to 20 hours across urban and city centres.
An Executive Summary of the federal government’s Power Sector Recovery Programme (PSRP) said the interventions in the programme include clearing the N450 billion shortfall of which N26 billion has been approved to offset electricity bills of the federal Ministries, Departments and Agencies (MDAs). Others are restoring cost reflective tariffs in the period while assuring the GenCos through a N701.9 billion facility to pay their energy invoices promptly. Government is also looking up to the World Bank for funding with a prospect of a loan of up to $2.5 billion to the sector.
Source : Energy Mix Report