FG Increases Electricity Tariff By 300% | SEE NEW PRICE
Amid the hardship in Nigeria and the epileptic system of power supply, the Federal government has announced a 300% increase in electricity tariff for Band A consumers.
The increment was approved by the Nigerian Electricity Regulatory Commission (NERC) and will become effective from April 3, 2024.
Accordingly, power distribution companies (DisCos) will be allowed to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68 for urban consumers.
Vice chairman of NERC, Musiliu Oseni, who made this announcement in Abuja, however, clarified that the rate increase will only affect 15 per cent of the electricity customers in the country.
Oseni also revealed that these customers, who represent 15 per cent of the population, also consume 40 per cent of the nation’s electricity.
He noted that the increase would not affect Bands B, C, D and E while noting that the number of customers previously on Band A has been reduced.
Band A customers are offered an average daily electricity supply of 20 hours, although many complain they do not get up to that.
“We currently have 800 feeders that are categorised as Band A feeders, but upon reviewing those feeders’ performance, the commission has now reduced it to under 500. This means that 17 per cent now qualify as Band A feeders. Those are the feeders that are currently meeting the average 20 hours average.
“So we have just 17 per cent of the total feeders of the distribution companies now qualify as Band A feeders. That is, when you look at where those feeders are critically, it is estimated that under 15 per cent of customers are currently connected to those feeders. So based on that, feeders are not meeting the 24-hour supply and have been asked to be downgraded immediately, with strict compliance and strong enforcement action,” he said.
He added that the commission now sets its review for that application by the distribution companies and has decided that only the 17 per cent feeders, that is, the 15 per cent customers, will be affected by any increase that the commission will approve for this distribution company.
“And in that order, the commission has approved a rate review of N225 per kilowatt hour for just under 15 per cent of the customer population. So that means less than 15 per cent of the customers will be affected. The commission has issued an order which is titled April Supplementary Order taking effect from today,” Oseni added.
NERC had in January said the Nigerian government will pay as much as N1.6 trillion to subsidise electricity in the year 2024.
