The Minister of Power, Works and Housing, Mr. Babatunde Fashola has said that the federal government will encourage the electricity distribution companies to allocate dedicated power to only those consumers who are ready to pay more under a ‘willing buyer, willing seller basis’.
Speaking during the inauguration of additional 220 megawatts to be dedicated to Lagos State by Egbin Power Plant in Lagos at the weekend, Fashola stated that Nigerians must be ready to pay more for the electricity they consume.
He insisted that dedicated power should be allocated to the category of customers, who are willing to pay higher than the other customers.
Fashola said the government was committed to ensuring that people using electricity must pay for it, adding that the government must also do all within its powers to ensure that debts were liquidated without disrupting the system.
According to him, if dedicated power is allocated to consumers, who are willing to pay higher price than the others, it would make more power available for the consumers, who pay less.
“I want to emphasis to the members of the public that there is privatisation. So, our role as a government has changed. The sector has been taken over by the private sector,” he said.
The minister was reacting to the plan by Eko Electricity Distribution Company to dedicate extra 100 megawatts of power expected from Egbin plant to Lagos State, in addition to the Disco’s normal power allocation from the national grid.
“If Eko Disco takes dedicated power and give it to those who are will to pay a bit higher on a willing buyer, willing seller basis, it will free more power for those who pay less,” he argued.
In his speech, the Chairman of Egbin Power Plc, Mr. Kola Adeshina said the dedication of additional 220mw from Egbin Power Plc to Lagos State would give one million homes additional six hours of power supply and create 6,000 direct and 10,000 indirect employment opportunities.
“We are equally pleased to inform you that a bilateral agreement to supply the 220mw to Ikeja Electric and Eko Distribution Company is already in place,” Adeshina said.
He said the dedication of additional 220mw would yield about 16 per cent more power supply to the Lagos State industrial community.
“Over one million homes in Lagos to enjoy additional 6 hours per day of stable power supply. Over 6,000 direct jobs, over 10,000 indirect employment to be created from support and maintenance services, engineering, procurement, supplies to different sectors. Robust growth for hundreds and possibly, thousands of SME’s across Lagos,” he added.
Adeshina said the plant was already witnessing some significant achievements, particularly its current sustained 1,110 megawatt- generation capacity that accounts for over 25 per cent of power supply in the country.