now sells $3.30mmbtu
By Musa Adamu
Abuja
Federal government has approved the new power-to-gas tariff from $2.50per mmbtu to $3.30 per mmbtu, representing an increase of 132 per cent and to take effective from this month.
The increase was announced by the ministries of power, petroleum resources and the Nigerian Electricity Regulatory Commission (NERC).
Speaking at the bi-annual minor review of the multi -year tariff order (MYTO-II), Vice Chairman of the NERC, Mohammed Bello, disclosed that this adjustment was necessary to ensure sustainable and reliable power supply.
He however said an alternative plans were already in place to facilitate the same goal.
He said the idea behind the 15 year MYTO was to set guidelines for the basis, pricing and procedures of the Nigerian energy sector where investors felt previous tariffs’ needed to be reviewed.
Since the implementation of the MYTO in 2008, gas prices have been regulated and the 2014 rate was originally US$1.80 per mmbtu.
“From what I have seen in the initial report, not much has changed. The tariff review is a sensitive issue to the consumer who considers paying higher and not seeing improvement in electricity supply. But there is a general consensus that this is the way to go. By paying what is due, this is how the power will begin to improve,” he said.