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B N W: Biafra Nigeria World News |
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NEPA tariff to rise soon, says minister
WITH anxiety over the recent increase in fuel prices yet to abate, Nigerians may have to brace up for an impending increase in electricity tariffs.
Indications to this effect emerged at the weekend at the kick-off of the 335 Megawatts gas turbine station located at Omotosho, Ondo State.
The Chinese Exim Bank is shouldering 65 per cent of the N25 billion Plant. But Power and Steel Minister Liyel Imoke told reporters at the weekend that the cost of the foreign component of the huge investment would be passed on to Nigerians "It will be recovered from consumers and paid back to the Chinese bank," he disclosed while fielding reporters questions.
The minister's submission is coming at a time when a power sector reform bill is currently pending before the National Assembly for consideration. It seeks among others, to enshrine the concept of appropriate pricing of electricity consumed by Nigerians.
Only last week, Managing Director of the National Electricity Authority (NEPA) Mr. Joseph Makoju said at a national gas policy workshop in Abuja that the issue of tariffs was the greatest challenge in the nation's bid to achieve adequate, stable and predictable power supply.
He told energy stakeholders " If NEPA is able to charge appropriate tariff to recover cost of gas it takes for its operations the nation will be the better for it"
The Omotosho gas turbine plant is the second of the three power plants now being built. The first was the 414 Megawatts gas station at Geregu, near Ajaokuta in Kogi State. The take-off of the 335 megawatts Papalanto plant is slated for today.
The three plants, coming on the heels of the Afam Power Station, which was commissioned in December 2001 in Rivers State, are expected to add at the completion of their first phases, over 1,400 megawatts to the National grid.
Imoke disclosed that the vision of the administration for a stable power supply was the attainment of 10,000 megawatts for the national grid.
He said: "Part of the plan for a total reform of the power sector is what we are achieving today. At inception in 1999, the national grid had just 2000 megawatts as its generation capacity. The vision to achieve 4,000 megawatts was realised in 2001..."
The minister disclosed further that N32 billion would be expended on the first phase of the Geregu plant, though with the second phase and its evacuation from Lokoja to Abuja and the national grid, the cost would hit the N50 billion mark.
Also at the weekend, the Managing Director of Ajaokuta Steel Complex, Mr Lalit Saghet reiterated that the company would start initial production by October 8 this year. Speaking to reporters at the turbine station, he said the new company, ISPAT encountered little difficulties since the recent take-over of the company.
It was further learnt that orders had been placed for 15,000 tonnes of billets for the test-running of the Geregu gas turbine plant. The plant is being built by Siemens, the builders of Afam.
Assuring that the nation went for "the latest state-of-the-art technology by picking Geregu, Makoju also noted that the plant "will go a long way in reducing the demand and supply circuit in no distant time... I am confident that soon, Nigerians will begin to enjoy stable supply of electricity."
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