The Nigerian Electricity Regulatory Commission (NERC), acting on behalf of the federal government, has given the green light to a hike in electricity rates for consumers falling under Band A classification.
In a press release issued by Musliu Oseni, the Vice Chairman of NERC, on Wednesday, it was announced that customers in this category would now be charged N225 per kilowatt-hour, marking a significant increase from the previous rate of N66.
Oseni clarified that Band A customers, constituting 15% of the nation’s 12 million electricity consumers, would be affected by this adjustment. He also revealed that some Band A customers have been reassigned to Band B due to inadequate electricity supply hours.
The commission’s decision, outlined in an April supplementary order, stipulates that only feeders servicing less than 15% of the total customer base would be subject to rate increases. This equates to approximately 17% of feeders, affecting less than 15% of customers in the Nigerian Electricity Supply Industry (NESI).
Importantly, Oseni emphasized that the tariff review would not impact customers in other bands.
Background Information:
Earlier reports from Nairametrics indicated that the federal government plans to implement a nearly 300% increase in electricity tariffs to attract investment into the sector. Sources revealed that tariffs for urban areas could rise to N200 per kWh from N68, with urban consumers representing 15% of the population, consuming about 40% of the nation’s power.
Furthermore, Bayo Onanuga, Special Adviser to the President on Information and Strategy, confirmed to Bloomberg that NERC would soon announce a price increase. He emphasized that the presidency would defer to the regulator’s decisions following discussions with distribution and generating companies.
