*Pix above: NERC
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The Nigerian Government through the Nigerian Electricity Regulatory Commission (NERC) has approved an increase in electricity tariff for users under the Band A classification.
The Vice Chairman, NERC, Musliu Oseni, said the increase will see the customers paying N225 kilowatt per hour from the current N66.
Cuustomers under Band A are those who enjoy 20 hours of electricity supply daily.
Speaking at a press conference in Abuja on Wednesday, Oseni said customers in Band A represent a 15 per cent of the 12 million electricity customers in the country.
He added that the commission had also downgraded some customers on the Band A to Band B due to the non-fulfillment of the required hours of electricity provided by the electricity distribution company.
He 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 which is titled ‘April Supplementary Order’ and the commission allows a 225 kilowatt per hour.”
Ten things to know about the increase
Hereunder are 10 facts you need to know of the new development:
2. This increase specifically targets customers enjoying 20-hour power supply or more, comprising less than 481 feeders out of over 3,000, which constitutes 15% of Nigeria’s 12 million electricity consumers.
3. Feeders not meeting the 20-hour supply threshold are mandated to be downgraded by NERC, resulting in a reduction of ‘Band A’ feeders from over 800 to under 500.
4. ‘Band A’ consumers witness a substantial rise in their electricity expenses which may likely go from N50,000 to N170,000 monthly, depending on consumption pattern, potentially offsetting costs on diesel and petrol generators due to improved power supply.
5. Only ‘Band A’ customers are assured of receiving at least 20 hours of power supply among the 11 electricity distribution companies, as stated by NERC.
6. Customers in ‘Band B’, ‘C’, ‘D’, and ‘E’, who receive less than 20 hours of power supply, are unaffected by the tariff hike, ensuring no increase in their electricity expenses.
7. The 240% increase implies a complete removal of electricity subsidy for ‘Band A’ customers, who represent 15% of households in urban areas of Nigeria and consume 40% of the country’s electricity.
8. The implementation of the new electricity tariff by Discos commenced on Wednesday, April 3rd, 2024, resulting in ‘Band A’ customers paying 240% more for electricity.
8. Despite the tariff hike, customers across all bands have been experiencing irregular power supply since January 2024, attributed to gas constraints by the Minister of Power, Adebayo Adelabu.
9. The classification system based on assured minimum daily electricity provision categorizes customers into different bands, determining the expected hours of power supply per day.
10. Those currently placed on Band A tariff can still be downgraded if the distribution company fails to fulfill the 20-hour per day minimum supply over a period.(agency)/PLEASE SHARE
