The Power Minister stated that private entities would incur costs of up to N750 per kilowatt-hour for electricity generation using petrol due to high petrol prices. For diesel-powered engines, the cost would be around N950 per kilowatt-hour, which is more expensive than the N209/kWh paid by Band A customers. He emphasized that despite complaints about the Band A tariff, it was still more cost-effective compared to self-generating power with petrol or diesel.
The minister clarified that the increased revenue for power distribution companies was not an additional burden on consumers but a reallocation of resources from fuel expenses. He highlighted that in 2023, N1tn was generated in the power sector, while N16.5tn was spent on procuring petrol and diesel for power generation.
With a more stable power supply, the need for fuel has decreased, leading to a full cost-reflective tariff of N209 for Band A customers. Adelabu urged consumers to support the Discos to maintain the ongoing reforms in the sector and avoid reverting to using fuel generators.
He emphasized the commercialization of the sector to attract investors and ensure returns on investments. The minister also expressed confidence that power generation would reach 6,000 megawatts by the year’s end, although challenges like grid collapses could hinder this goal.