Power Tariff Shortfall its N420 Billion over Two Years

Electricity-Tariff

The Federal Government has declared that the total shortfall in the amount of electricity tariff payable by consumers to the power sector between January 2015 and December 2016 is N420bn, The Punch reports.

According to the government, the huge tariff shortfall has been a major constraint to the power sector due to insufficient end-user tariffs that should have been paid to the industry. This is contained in the Power Sector Recovery Programme document detailing series of policy actions to be implemented by the Federal Government. The Minister of Power, Works and Housing, Babatunde Fashola, recently presented the PSRP document to civil society organisations in Abuja.

It said, “The challenges include infrastructure constraints associated with gas, generation, transmission and distribution; insufficient end-user tariffs; sector tariff shortfalls between January 2015 and December 2016 of N420bn; slow pace of loss reduction and load rejection by the DisCos (distribution companies); and sector governance challenges. Collectively, these challenges have discouraged private sector investment in the sector and continued to impede Nigeria’s economic development.”

Source: Energy Mix Report

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