June 11, (THEWILL) – The Minister of Power, Adebayo Adelabu, said that the implementation of a higher tariff for BAND A electricity consumers, has led to a decrease in electricity subsidy, from approximately N3 trillion to N1 trillion.
Adelabu disclosed this on Tuesday, in Abuja, during the public hearing on electricity rates by the House of Representatives Joint Committee on Power, Commerce, National Planning, and Delegated Legislation.
The Nigeria Electricity Regulatory Commission (NERC) had on April 3, approved an increase in electricity tariff for customers under the Band A classification.
Speaking on Tuesday, Adelabu said projected electricity subsidy would have approached nearly N3 trillion if there was no Tariff increase for Band A consumers.
Rather than accumulating debt for the government, the minister said his ministry devised a system allowing customers to cover the cost of subsidies in band A.
This will serve as a reimbursement for the gasoline and diesel that customers are currently utilising, he added.
