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Electricity tariff will reduce if exchange rate drops – Adelabu says

Voice Air Media, VAM News Update

Minister of Power, Adebayo Adelabu has claimed that the electricity tariffs that were recently increased, will reduce if the exchange rate falls below N1,000 to a dollar.

Adelabu made this comment when he appeared on Channels Television’s Politics Today on Thursday.

On April 3, the Nigerian Electricity Regulatory Commission, NERC, announced the removal of subsidy on the electricity consumed by Band A customers.

Band A customers now pay N255/KWh, a hike from N68/kWh, while others maintain the old tariffs.

But Adelabu has now given conditions for a possible reduction.

“The tariff is flexible. I can tell you if the naira gains more and the exchange rate comes down below N1,000 to a dollar, it must positively affect the tariff; and the tariff, even for Band A, will come down below the N225/KWh that we are currently charging.

“There are variable factors that go into the composition of the tariff, and we are not closing our eyes to it,” Adelabu said.

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