Minster of Power, Works and Housing, Raji Fashola, has stated that power tariff is anchored on the dynamics of the economy.
He added that as the raw materials for generating power increased in price, the rate being charged for electricity would also go up, and vice versa.
The Minister of Power, Works and Housing, Babtunde Fashola, disclosed this during the signing of the front-runner Power Purchase Agreements between the Federal Government and 14 solar power development and promoting companies in Abuja.
“Let us use this opportunity to enlighten the public that tariff can never be permanently fixed, because it must be always subject to the dynamics of the economy.
“Therefore, if the raw materials go up, tariff must follow at the same time; in the way that if it comes down, tariff will also come down,” the minister said.
This came following the Federal Government’s decision to oppose the court ruling that mandated it and the Nigerian Electricity Regulatory Commission to reverse the 45 per cent increase in power tariffs payable by consumers across the country.
It also commended NERC for appealing the judgement, describing the ruling as a setback that posed a challenge, which had prompted misunderstanding in the sector.