Fashola justifies the 45% increase in electricity tariff

The Minister of Work, Power and Housing, Babatunde Fashola, has rationalized the recent 45% increase in electricity tariff.

The Minister made the justification on Tuesday when he appeared before the Senate Committee on Power.

Fashola further stated that the tariff increase is the only viable course of action that will enhance stability of power in the country.

The Minister justified the situation by stating that increase in cost of purchasing raw materials for power was among the reasons for the increase in tariff.

He stated that:

“Electricity is a product, it is made from raw materials, some of the raw materials are gas, some of the raw materials are power plants they are also related.

“So, the issue of tariff is not the single issue of price, when the raw materials go up, the price cannot stay the same.”

Fashola explained that the reason why Federal Government privatized electricity was to get more private capital and ensure that investment in energy are where they ought to be.

He also said that government and electricity consumers should support the current step in the power sector by emboldening the power generating firms in the country, who are producing power at the appropriate price.

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