Tariff Hike: Only Those Not Paying Electricity Bills Before Complaining – Adelabu
The Minister of Power, Adebayo Adelabu on Thursday, said only those who are not used to paying for electricity in the past are complaining about the increase in tariff for Band A consumers.
Adelabu said proper arithmetic will show that
those in Band A have achieved nothing less than 30 to 40 per cent reduction in their total cost.
He made this known while speaking at the 8th Africa Energy Marketplace forum in Abuja.
The power Minister noted that the introduction of the new tariff has led to a reduction in energy costs for consumers in the band by 30 to 40%.
Adelabu also said the notion that the new electricity price regime has jacked up the cost of production for manufacturers, contributing to the high cost of goods and services was not true.
He stressed that the new tariff was not targeted at further impoverishing Nigerians or worsening the already bad economic situation but was introduced to reduce the peopleโs hardship.
โThose 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.
โWe are also electricity consumers, so we can attest to this fact. It is true that if you were 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 gone down considerably.
โSo 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.
โManufacturers 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,โ Adelabu said.
