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NERC Announces Fresh Increase On Electricity Tariff
Band A customers, who receive a minimum of 20 hours of electricity daily, will now be required to pay N225/kWh instead of the previous rate of N68/kWh following the recent adjustment by the Nigerian Electricity Regulatory Commission (NERC).
Consequently, as per the new directive, Band A customers will no longer benefit from the Federal Government subsidy on electricity.
According to NERC in Abuja, Band A customers represent only 15 per cent of the total electricity customer base nationwide.
During a press conference in Abuja on Wednesday, Musliu Oseni, the Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), announced that electricity tariffs will be revised.
The new rates require customers to pay ₦225 per kilowatt-hour, a significant increase from the current ₦66.
Oseni further stated that this adjustment will affect approximately 15 percent of the country’s 12 million electricity consumers.
He mentioned that the commission has decided to downgrade certain customers from Band A to Band B due to the electricity distribution company’s failure to meet the required service hours.
Oseni said: “We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent now qualify as Band-A feeders. These feeders only service 15 per cent of total electricity customers connected to the feeders.
“The commission has issued an order titled April supplementary order, and the commission allows 235 kilowatts per hour.”
Bloomberg reported on Tuesday that power companies will have permission to increase electricity prices for urban consumers from N68 to N200 ($0.15) per kilowatt-hour.
This decision, according to sources in the presidency, aims to attract new investments and reduce the $2.3 billion spent on tariff subsidies.
As a result, Nigerians will now be required to pay $2.42 per one million British thermal units, up from the previous rate of $2.18 MMBtu.
This increase comes after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced on Monday an increase in the price of natural gas for power generation.
