{"id":115495,"date":"2021-12-02T18:01:53","date_gmt":"2021-12-02T17:01:53","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=115495"},"modified":"2021-12-02T18:01:53","modified_gmt":"2021-12-02T17:01:53","slug":"cost-reflective-tariffs-will-solve-power-sector-problems-says-fg","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2021\/12\/02\/cost-reflective-tariffs-will-solve-power-sector-problems-says-fg\/","title":{"rendered":"Cost-reflective tariffs will solve power sector problems, says FG"},"content":{"rendered":"<p>The federal government has disclosed that cost-reflective tariffs will solve power sector problems in the country.<\/p>\n<p>This was made known by the special adviser to the president on infrastructure, Ahmad Zakari at the<span data-preserver-spaces=\"true\">\u00a012th edition of the PwC Nigeria\u2019s annual power and utilities roundtable.\u00a0<\/span><\/p>\n<p>Zakari at the hybrid event said the cost-reflective policy will<span data-preserver-spaces=\"true\">\u00a0improve the power supply in the country.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWith the cost-reflective tariff, everything will fall in place in the power sector. From the government\u2019s perspective as we migrated towards this, we have an understanding that more needs to be done,\u201d Zakari said.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cFor instance, our cost-reflective tariff (CRT) versus allowable <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/11\/14\/can-to-fg-rising-cooking-gas-prices-electricity-tariff-will-inflict-hardship-on-nigerians\/\">tariff<\/a> (AT) gap reached a peak of N28 gap in 2019, at that rate, between that period and 2021 alone, we would have recorded N1 trillion in tariff shortfall or subsidy.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He further noted that this was largely responsible for liquidity crunch in the power sector as well as the poor power supply in the country.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Consequently, it has disclosed its plans to re-align its policies, regulations and the activities of the power sector operators as a means of improving <a href=\"https:\/\/www.withinnigeria.com\/news\/2021\/11\/25\/lagos-develops-policy-to-drive-electricity-sustainability\/\">electricity supply<\/a>.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Zakari also said that there is a need for a holistic review, noting that the first thing is to do is regulatory and policy alignment to eliminate the gap in service-based tariff.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cAt this time, DISCOs with the revised economic models will be faced with incentives and penalties that would allow them to be able to achieve optimisation,\u201d he said<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe second phase will now be infrastructure alignment. If the economics of tariff-based works, then infrastructure will be improved.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cAs at 2015, at the take-off of the power sector privatization, the gap between CRT and AT was about N15. That figure has reduced to N6.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe gap has closed from N28, N15 and now N6. Essentially, after the last Multi-Year Tariff Order (MYTO), cost-reflective tariff became N55 and defective tariff that the DISCOs are allowed to charge was N49.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cBy January next year, after the review of the MYTO that tariff gap will be eliminated completely. That elimination of the tariff gap will ensure that we optimise and get all of our installed 12Giggawatt of electricity generation capacity delivered.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The federal government has disclosed that cost-reflective tariffs will solve power sector problems in the country. This was made known by the special adviser to the president on infrastructure, Ahmad Zakari at the\u00a012th edition of the PwC Nigeria\u2019s annual power and utilities roundtable.\u00a0 Zakari at the hybrid event said the cost-reflective policy will\u00a0improve the power [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":41688,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[24026,24025,24027,371],"class_list":["post-115495","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-ahmad-zakari","tag-cost-reflective-tariffs","tag-electricity-supply","tag-fg"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cost-reflective tariffs will solve power sector problems, says FG<\/title>\n<meta name=\"description\" content=\"The federal government has disclosed that cost-reflective tariffs will solve power sector problems in the country.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.withinnigeria.com\/news\/2021\/12\/02\/cost-reflective-tariffs-will-solve-power-sector-problems-says-fg\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cost-reflective tariffs will solve power sector problems, says FG\" \/>\n<meta property=\"og:description\" content=\"The federal government has disclosed that cost-reflective tariffs will solve power sector problems in the country. 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