Home » Gas, water constraints shrink power generation, stall tariff hike

Gas, water constraints shrink power generation, stall tariff hike

Okechukwu Nnodim

Indications emerged on Thursday that the planned July 1, 2021 review of the various electricity tariffs in Nigeria had been stalled following concerns around low power generation by the sector.

It was gathered that gas constraints to gas-fired power generation plants and the reduced water level needed by hydropower stations had impacted negatively on electricity generation in the past three months.

This had resulted in blackouts in many parts of the country, as well as reduced hours of power supply in some other locations in Nigeria.

Industry officials from the Federal Ministry of Power, Nigerian Electricity Regulatory Commission, as well as power generation and distribution companies told our correspondent that the highlighted issues stalled the proposed review of tariffs by the NERC.

In April, NERC announced that there would be a review of tariffs for Nigeria’s 11 power distribution companies in July.

It disclosed this in its notice of Minor and Extraordinary Review of Tariffs for Electricity Transmission and Distribution Companies, a development which stakeholders said might lead to a rise in the tariffs payable by electricity users.

The commission had explained that the extraordinary review was as a result of changes in inflation, foreign exchange, gas prices, available generation capacity and capital expenditure.

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