Connect with us


NEWS

FG approves new electricity tariff for Band A consumers

Published

on

The Nigerian Electricity Regulatory Commission (NERC) has given the green light for an increase in electricity rates for consumers categorized under Band A, as confirmed by Vice Chairman Musliu Oseni in a press statement released on Wednesday.

The approved tariff hike will see consumers in Band A paying N225 per kilowatt-hour, a significant increase from the existing rate of N66. Band A customers represent 15% of the nation’s 12 million electricity consumers.

Oseni explained that due to the failure to meet required electricity supply hours, some Band A customers have been moved to Band B.

The commission’s review revealed that out of the 800 feeders initially categorized as Band A, only around 500 now meet the criteria, serving just 17% of the total customer base.

The April supplementary order issued by the commission ensures that any rate increase approved will only affect the 17% of feeders and less than 15% of customers in the National Electricity Supply Industry (NESI).

The new rate of N225 per kilowatt-hour applies exclusively to this subset of customers and takes immediate effect.

However, customers in other Bands will not be affected by the tariff review.

Earlier reports suggested that the federal government is planning a nearly 300% increase in electricity tariffs to attract investment into the sector.

Urban consumers may see tariffs rise to N200 per kilowatt-hour, up from N68, with urban centers accounting for 15% of the population but consuming around 40% of the nation’s power.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, indicated that NERC would make an official announcement regarding the price increase.

He stated that the presidency cannot comment on the matter at this stage, as discussions are ongoing between the regulator and distribution and generating companies.

Trending