Again, FG speaks on ‘electricity tariff hike’

The Minister of Power, Joseph Tegbe, has dismissed reports that the Federal Government plans to increase electricity tariffs, assuring Nigerians that the administration is focused on improving power supply and delivering electricity around the clock.

Tegbe gave the assurance on Thursday during the groundbreaking ceremony for five interconnected mini-grid projects with a combined capacity of 17.7 megawatts and a 17.74-megawatt-hour Battery Energy Storage System (BESS) in Ibadan, Oyo State.

The minister said the government’s priority was to improve electricity supply across the country, urging Nigerians to disregard information suggesting that a tariff increase was being planned.

“I want to say this clearly and without ambiguity: there is no plan to increase electricity tariff. What we are planning is a power sector that works around the clock. Our commitment is 24/7 power,” he said.

His remarks came amid concerns over electricity costs and the need for more reliable power supply for households, businesses and industries. However, Tegbe maintained that the government’s immediate focus was on improving service delivery rather than increasing the financial burden on electricity consumers.

Five mini-grid projects to serve Oyo communities

The five interconnected mini-grid projects are located in Bola, Jiboye, Molade-Adelubi, Ogo Oluwa and Sooko-Elega.

According to the information provided, the projects are expected to serve communities across Akinyele, Ido, Ibadan North, Egbeda and Lagelu local government areas of Oyo State.

The projects have a combined generation capacity of 17.7 megawatts, alongside a battery energy storage system with a capacity of 17.74 megawatt-hours.

The initiative is expected to support electricity delivery in the beneficiary communities through interconnected mini-grid infrastructure and energy storage technology.

Mini-grids can provide electricity to communities through local power networks, while interconnected systems can link different electricity sources or distribution networks. Battery storage systems can store energy for use when needed, helping to manage fluctuations in supply and demand.

The scale and eventual impact of the projects will depend on their completion, connection to the relevant distribution infrastructure and effective operation.

Minister reiterates commitment to reliable electricity

Tegbe said the Federal Government remained committed to building a power sector capable of meeting the electricity needs of Nigerians and supporting economic activities.

He urged the public not to be misled by claims of an impending tariff increase, reiterating that the administration’s priority was to improve the reliability of electricity supply.

His assurance comes as households and businesses continue to depend on electricity for domestic activities, commercial operations and industrial production. Reliable power supply is also important for small businesses seeking to reduce operating costs associated with alternative sources of electricity.

For businesses, particularly small and medium-sized enterprises, improved electricity supply could help reduce dependence on petrol and diesel generators, although the extent of any savings would depend on the consistency and affordability of the power delivered.

The minister’s emphasis on round-the-clock electricity also highlights the importance of combining investments in power infrastructure with effective distribution, maintenance and energy management.

Battery storage expected to support power delivery

The 17.74-megawatt-hour BESS forms a major component of the announced projects. Battery energy storage technology allows electricity generated at one time to be stored and supplied later, depending on the system’s design and operating conditions.

Such systems can help manage differences between electricity generation and demand and provide additional flexibility for mini-grid networks.

The five projects are intended to improve access to electricity in the designated communities, although the information released did not specify their completion dates, projected number of beneficiaries or the expected hours of supply in each location.

Tegbe’s statement on tariffs was a reassurance that the Federal Government had no plan to increase electricity prices, while the mini-grid projects represent an infrastructure initiative aimed at improving power delivery in parts of Oyo State.

The minister urged Nigerians to disregard misinformation about a possible tariff hike, maintaining that the government’s priority was to deliver reliable electricity and build a power sector capable of supporting households, businesses and national economic development.