Tuesday, April 23, 2024

New Electricity Tariff: ‘Band A’ price hiked from N66 to N225 per kilowatt 

NERC has announced a hike in electricity tariffs that would only apply to urban customers who consume a minimum of 20 hours of power supply per day.

• April 3, 2024
Prepaid metres
Prepaid metres(Credit: The Guardian Nigeria)

The Nigerian Electricity Regulatory Commission (NERC) has announced a hike in electricity tariffs that would only apply to urban customers who consume a minimum of 20 hours of power supply per day.

Musliu Oseni, the vice chair of NERC, made the statement on Wednesday at a press conference in Abuja. He said the impacted consumers would now pay N225 per kilowatt rather than the previous N66. 

Mr Oseni disclosed that only 17 per cent of the nation’s 12 million electricity consumers will be affected by the tariff increase and stated that 300 of 800 Band A users have been demoted to Band B because they did not meet the criteria for the number hours of electricity supplied.

“We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500, Mr Oseni told journalists Wednesday afternoon. “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 announcement caps monthslong speculations on how the government intended to address subsidy removal on electricity tariffs, a move that the minister of power Adebayo Adelabu had steadfastly supported.

Mr Adelabu said the debt burden on the ministry had ballooned to over N2 trillion, which was not sustainable for the sector.

The increase aimed to reduce the government’s debt burden and attract investors, Bloomberg reported on Tuesday, citing government sources who requested anonymity.

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