NERC ups tariffs to N225/KWh for Band A electricity consumers

Business a.m.

The Nigerian Electricity Regulatory Commission (NERC), with the backing of the federal government, has approved a 245 per cent increase in electricity tariffs for Band A customers. Under the new policy, customers in this category will now pay N225 per kilowatt hour, a significant increase from the previous rate of N66.

Musliu Oseni, the NERC vice chairman,made the disclosure during a press briefing in Abuja, noting that the Band A customers who enjoy 20 hours of electricity supply daily, make up 15 per cent of the country’s 12 million electricity consumers. He explained further that these customers consume 40 per cent of the country’s electricity.

In addition to the changes in tariffs, Oseni disclosed that the number of feeders classified as Band A would be reduced from 800 to under 500. This means that only 17 per cent of the total feeders now qualify as Band A feeders, despite serving 15 per cent of all electricity consumers. He, however, said that the review would not impact customers in the other Bands.

Oseni stated: “The commission has issued an order which is titled April supplementary order taking effect from today.

“The commission now reviewed further the application by the distribution companies and have decided that only the 17% feeders and less than 15% customers will be affected by any rate increase that the commission will ever approve for the distribution company.

“The order takes effect from today and in that order the commission has approved a rate review of N225 per killowatt hour for just under 15% of the customer population in NESI. That means that less than 15% of the customers will be affected.“

In January, the NERC released a report that revealed that the federal government will spend up to N1.6 trillion in 2024 to subsidise electricity. In a separate statement, the Chairperson of the NERC, Sanusi Garba, announced a new tariff plan for electricity consumers in the country. The plan sets out the correct tariffs that customers must pay in order for investors to recover their operating expenses.