The Minister of Power, Adebayo Adelabu, has expressed concern over the increasing trend of bulk electricity consumers abandoning the national grid in favour of generating their own electricity. This comes in the wake of a controversial electricity tariff hike implemented last April, which saw rates increase by more than 200 percent for Band A consumers - those with 20 hours or more of daily power supply.

Adelabu emphasized that grid connection remains a more reliable power source than the captive power plants currently favored by many bulk electricity consumers. He expressed frustration that despite achieving a record generation of 5,155MW, much of this capacity is not being utilized.

Speaking at the Board retreat of the Nigeria Electricity Liability Management Company in Lagos on Thursday, the minister said, "The majority of bulk electricity users, such as industries, are off the grid due to lack of trust and confidence in the past. They now have their own captive power plants in their industries which is more expensive."

The minister's comments come against the backdrop of widespread criticism and protests following the substantial tariff increase. Many consumers and businesses have cited the higher costs as a factor in their decision to seek alternative power sources.

Adelabu argued that despite the recent price hikes, grid electricity remains more economical than private generation. "The average cost of producing captive power is about N350 to N400 per kilowatt-hour for those connected to gas lines. For diesel, it's about N950 while petrol is about N550," he explained.

The minister outlined plans to encourage bulk users to return to the grid, stating, "Once consumers and industries see the trust, the confidence and the stability we are giving, they would be encouraged and reconnect to the grid for a cheaper source of power."

Adelabu reiterated the government's ambitious power targets, including reaching 6 gigawatts by the end of December 2024 and adhering to the Vision 30-30-30 plan, which aims to achieve 30GW by 2030, with 30 percent from renewable sources.

To address demand fluctuations, the minister proposed introducing differential tariffs for off-peak periods, leveraging smart meter technology. This approach aims to stimulate demand during low-usage hours, potentially offering some relief to consumers still grappling with the effects of the recent tariff increase.