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Electricity generation drops by 16.4% to 3,501.20MW amid tariff hike plans

The Week-on-Week decline indicates a 16.4% drop in power generation caused by factors which include the low gas supply to power plants, and the general poor state of plants.
Enerza was founded after a widespread power outage in Canada affected nearly a million people.D3sign/Getty Images
Enerza was founded after a widespread power outage in Canada affected nearly a million people.D3sign/Getty Images

The Week-on-Week decline indicates a 16.4% drop in power generation caused by factors which include the low gas supply to power plants, and the general poor state of plants.

This is the second time in two months generation companies are witnessing a power drop. In June, power generation dropped by 37% to 2,649.9 MW, from 4,207.05 MW recorded during the preceding week.

Households and small businesses that rely on electricity from the DisCos have lamented losses from the situation as the recurring drop in power generation has pushed DisCos to embark on a load-sharing formula in order to share the limited electricity among their numerous customers.

The current power generation which is less than 5,000 MW has been reported to be grossly inadequate for transmission and distribution to households and organisations in different parts of the nation.

According to The Executive Director, Association of Nigerian Electricity Distributors, Mr Sunday Oduntan, Nigeria needs at least 180,000 MW of electricity to have an adequate and stable power supply. This drop in power generation comes amid plans by DisCos to increase the electricity tariff.

According to the Nigerian Electricity Regulatory Commission (NERC), eleven DisCos have already intimated the commission of their plans to increase electricity charges.

The DisCos hinged their decision on the floating of the naira while adding that the reason for the tariff hike was to make sure the electricity industry stayed viable financially and remained sustainable in the face of currency challenges.

If approved, the increment would see customers within the higher Bands A (with a supply of 20 hours and above) and B (16 to 20 hours) experience comparatively higher tariffs while the lower bands B and C, with supply hours ranging from 12 to 16 per day will have their charges reviewed to ₦100 per kWh.

The increment has, however, been rejected by the House of Representatives as lawmakers have rejected the planned hike.

According to the Deputy Minority Whip, Aliyu Madaki, the proposed increase should not be allowed to go ahead as the DisCos have been unable to meet the expected supply target of at least 5,000 MW per year.

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