The Nigerian Electricity Regulatory Commission (NERC) has given the green light for a rise in electricity rates for consumers in the Band A category.
NERC’s Vice Chairman, Musliu Oseni, announced that the new rates would escalate to N225 per kilowatt hour from the existing N66, marking a significant hike for these customers.
It’s noted by PUNCH Online that Band A customers benefit from up to 20 hours of electricity daily.
During a media briefing in Abuja on a recent Wednesday, Oseni explained that Band A customers make up about 15 percent of the nation’s 12 million electricity consumers.
He also mentioned adjustments in the categorization of some Band A customers to Band B, attributing this change to the failure in meeting the stipulated hours of electricity supply by their distribution company.
“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 235 kilowatt per hour.”
Oseni clarified that the tariff adjustments would not impact consumers in other bands.
Bloomberg, citing insider sources on Tuesday, revealed that power firms are set to increase electricity tariffs to N200 ($0.15) per kilowatt-hour from N68 for city dwellers, aimed at attracting fresh investments and cutting down the approximately $2.3 billion government expenditure on tariff subsidies.
The report detailed, “Nigerians will now have to pay $2.42 per one million British thermal units from the previous rate of $2.18 MMBtu.”
This adjustment aligns with the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s recent announcement on Monday about the hike in natural gas prices, a crucial source for over 70% of the country’s electricity production.
