Government expects 1.5trn savings, more meters with electricity tariff hike

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The Federal Government has announced that it expects to save a significant amount of money this year following the recent increase in electricity tariffs for Band A customers.

With the tariff adjustment, the government anticipates saving around N1.5 trillion, aiming to reduce the burden of energy subsidies, which amounted to N450 billion in the 2024 budget. The move is part of efforts to improve the financial health of the Nigeria Electricity Supply Industry (NESI).

In addition to the savings, the government plans to bridge the gap in metering across the country by installing approximately 2.5 million meters this year. This initiative aims to ensure that consumers are billed accurately for their electricity usage, enhancing transparency and accountability in the power sector.

However, the government clarified that it will continue to subsidize electricity for consumers in Bands below A. It also emphasized that power distribution companies (Discos) will face sanctions if they fail to provide at least 20 hours of electricity supply to Band A consumers. The government’s focus remains on improving energy access and efficiency while addressing challenges in the power sector.

Source: PUNCH

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