ELECTRICITY: HARD TIMES AWAIT NIGERIANS AS NNPC PLANS 50 PERCENT - TopicsExpress

ELECTRICITY: HARD TIMES AWAIT NIGERIANS AS NNPC PLANS 50 PERCENT GAS HIKE Nigerians may have to pay more for electricity as the Federal Government says it is considering a hike in the price of natural gas to power plants by about 50 per cent. At the moment, oil and gas companies supply gas to power plants for the generation of electricity at the rate of $1 per 1000 standard cubic feet, SCF. However, the Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Andrew Yakubu, said in Abuja on Tuesday that the rate would soon be raised to $1.5 per 1000 SCF to ensure adequate supply and encourage more gas supplies/sales to power plants. The decision to consider a 50 per cent hike in the price of the commodity was said to be sequel to the demand by gas suppliers who complain about the “uneconomic price” they have been made to sell to the power plants. Indications are that the development may result in an increase in electricity tariff with power producers trying to recover cost incurred.

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