Band A Electricity Consumers To Pay 225kW As NERC Approves 250% Tariff Hike

From Lateef Taiwo

The Nigerian Electricity Regulatory Commission, NERC, has announced 250 percent increase in electricity tariff for consumers in the Band A classification.

At a press briefing in Abuja on Wednesday, NERC’s Vice Chairman, Musliu Oseni, stated that the rise will see users pay N225 per kilowatt hour, 159 up from the current N66.

The customers under Band A are those who enjoy 20 hours of electricity supply daily.

Oseni said these customers represents 15 percent 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 non-fulfilment of the required hours of electricity provided by the electricity 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 percent now qualify as Band A feeders. These feeders only service 15 percent 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.”

He added that the review will not affect customers on the other Bands.

Various media including reports had on Tuesday carried reports on imminent increase in electricity tariffs following the announcement of new gas prices by the federal government on Monday.

Bloomberg had reported that power companies will be allowed to raise electricity prices to N200 ($0.15) per kilowatt-hour from N68 for urban consumers.

“It quoted people in the presidency with knowledge of the matter saying this was in a bid to attract new investment and slash about $2.3 billion spent to cap tariffs (subsidies).

According to the News Agency of Nigeria, NAN, “Nigerians will now have to pay $2.42 per one million British thermal units from the previous rate of $2.18 MMBtu.”

The development comes amidst Monday’s announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of an increase in the price of natural gas, which is used to generate more than 70% of electricity in Nigeria.