The Nigerian Electricity Regulatory Commission (NERC) has given the green light for an increase in electricity tariff for customers falling under the Band A classification. The Vice Chairman of NERC, Musliu Oseni, announced that customers in this category, who currently pay N66 per kilowatt-hour, will now be charged N225 per kilowatt-hour.
Band A customers, who enjoy 20 hours of electricity supply daily, represent approximately 15 percent of the 12 million electricity customers nationwide, as noted by Findwhosabi. . Oseni explained that the commission has downscaled some customers from Band A to Band B due to the failure of electricity distribution companies to meet the required hours of electricity provision.
Addressing the press in Abuja, Oseni revealed that the number of feeders categorized as Band A would be reduced from 800 to under 500, with only 17 percent now qualifying as Band A feeders. He clarified that this adjustment affects only 15 percent of total electricity customers connected to the feeders.
Furthermore, NERC has issued an order titled ‘April Supplementary Order,’ permitting a 235 kilowatt per hour rate. Importantly, Oseni assured that the tariff review would not impact customers in other bands.
The decision to raise electricity prices aligns with reports from Bloomberg, which highlighted the need to attract new investments and reduce the $2.3 billion expenditure to cap tariffs. The move allows power companies to increase prices to N200 ($0.15) per kilowatt-hour for urban consumers, as confirmed by sources in the presidency.
In addition to the tariff adjustment, Nigerians will see an increase in the price of natural gas, a primary fuel source for electricity generation, as announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority. This development underscores ongoing efforts to address challenges in the energy sector and stimulate investment for sustainable power supply in Nigeria.