The federal authorities, in unveiling its strategic route for the ability sector within the new yr, has introduced that efforts had been ongoing to assessment the implementation of a cost-reflective tariff.
Adebayo Adelabu, the minister of energy, disclosed this in his ‘New Yr’ message on Monday.
A value-reflective tariff displays the precise value of supplying electrical energy. It removes the reliance on authorities subsidies to cowl the variance between the present tariff and the precise value of provide of electrical energy.
That is because the federal authorities paid a complete of N375.8 billion as a subsidy for electrical energy consumed within the nation from January to September 2023, following the shortcoming of DisCos to gather the overall quantity billed to clients within the interval.
In accordance with Adelabu, the Tinubu-led administration is targeted on enhancing electrical energy distribution and transmission infrastructure to attenuate technical and business losses.
“Our main focus is enhancing distribution and transmission infrastructure to attenuate technical and business losses. The shortage of liquidity continues to be a big problem within the electrical energy market.
“We’re at the moment reviewing the implementation means of a cost-reflective tariff, whereas the Authorities will proceed to subsidize energy provide to those who are weak in our society.”
He acknowledged that closing the meter hole is crucial, and ongoing initiatives, together with World Financial institution applications and the Presidential Metering Initiatives, will achieve momentum. He added that the ministry will intervene in distribution infrastructure, supplying transformers to communities with out burdening residents financially.
Adelabu mentioned additional that rural electrification would stay a precedence, with plans for solar-powered mini/microgrids and avenue lights whereas collaborating carefully with Distribution Firms and state electrical energy boards.
He additionally added that to enhance the transmission infrastructure, the federal government has reactivated the Presidential Energy Initiative (Siemens Venture) to strengthen the nationwide grid and reduce technical losses. “We may also be implementing the Japanese and Western tremendous grid initiatives to strengthen the grid and improve electrical energy provide to demand centres within the nation.
“The Transmission Firm of Nigeria might be reconstituted within the brief time period, separating Transmission companies from System and Market operations within the first quarter of this yr. Within the medium to long-term, the Transmission grid might be separated into regional grids to allow efficient administration.
“Producing at put in capability is a aim for government-owned crops, whereas personal corporations are inspired to take a position additional. Off-grid and distributed era, using renewables, might be a focus. Photo voltaic PV crops, small hydro crops, and wind farms might be strategically deployed.”
On Energy theft, the Minister mentioned tackling energy theft and vandalism is paramount. “This nationwide duty requires joint efforts to guard our belongings. The Ministry has knowledgeable the NSA of recorded circumstances, and collective motion is crucial to eradicate these setbacks.”
