The federal government says it has been subsidising the electricity supply for the citizens to the tune of over N50 billion.
The Minister of Power, Sale Mamman said the funds are provided to augment the shortfall by the Distribution Companies which have failed to defray the cost of bulk electricity supplied to them by the Generating Companies.
He however noted that following a minor increase in the tariff regime, the subsidy has now decreased by half, but still constitutes a serious drain on the nation’s economy.
In a statement by his aide, Aaron Artimas, the minister expressed concern over the failure by the distribution companies to stabilise their operations and meet their financial obligations to other players in the sector.
He said it was in response to this unfortunate development that the Federal Government had been forced to partly subsidise the sector so as not to price the cost of electricity out of the reach of the common man.
