. Govt to provide meters for 5 million Nigerians
. To provise solar power for 5 million homes
PRESIDENT Muhammadu Buhari has described the recent increase in electricity tariff as inevitable, noting that it would be irresponsible for government to borrow to subsidise power.
Buhari stated this at the first year ministerial performance review retreat in Abuja.
He said: “The recent service based tariff adjustment by the Discos has also been a source of concern for many of us. Let me say frankly that like many Nigerians I have been very unhappy about the quality of service given by the Discos, but there are many constraints including poor transmission capacity and distribution capacity.
“ I have already signed off on the first phase of the Siemens project to address many of these issues. Because of the problems with the privatization exercise, government has had to keep supporting the largely privatized electricity industry.
“So far to keep the industry going we have spent almost N1.7 trillion, especially by way of supplementing tariffs shortfalls. We do not have the resources at this point to continue in this way and it will be grossly irresponsible to borrow to subsidize a generation and distribution which are both privatized.
“But we also have a duty to ensure that the large majority of those who cannot afford to pay cost reflective tariffs are protected from increases.
“NERC, the industry regulator therefore approved that tariff adjustments had to be made but only on the basis of guaranteed improvement in service. Under this new arrangement, only customers who are guaranteed a minimum of 12hours of power and above can have their tariffs adjusted. Those who get less than 12 hours supply, or the Band D and E customers must be maintained on lifeline tariffs, meaning that they will experience no increase. This is the largest group of customers”
The president also said that government has also taken notice of the complaints about arbitrary estimated billing, assuring that a mass metering programme is being undertaken to provide meters for over 5 million Nigerians, largely driven by preferred procurement from local manufacturers – creating thousands of jobs in the process.
“NERC has also committed to strictly enforcing the capping regulation which will ensure that unmetered customers are not charged beyond the metered customers in their neighbourhood. In other words no more estimated Billings.
“In addressing the power problems we must not forget that most Nigerians are not even connected to electricity at all. So as part of the Economic Sustainability Plan, we are providing Solar home systems to 5 million Nigerian households in the next 12 months. We have already begun the process of providing financing support through the CBN for manufacturers and retailers of Off Grid Solar Home Systems and Mini-Grids who are to provide the systems. “The five million systems under the ESP’s Solar Power Strategy will produce 250,000 jobs and impact up to 25 million beneficiaries through the installation This means that more Nigerians will have access to electricity via a reliable and sustainable solar system.
“The support to Solar Home System manufacturers and the bulk procurement of local meters will create over 300,000 local jobs while ensuring that we set Nigeria on a path to full electrification. The tariff review is not about the increase, which will only affect the top electricity consumers, but establishing a system which will definitely lead to improved service for all at a fair and reasonable price,” he said.
