Nigerian electricity consumers to pay more as NERC approves Service-Based Tariff

*Collection of Service-Based Tariff is reportedly targeted at increasing electricity costs by over 50 percent to enable the Federal Government to discontinue subsidy in the power sector

Alexander Davis | ConsumerConnect

In a drive to deregulate the energy industry and enable the Federal Government to end subsidy in the electricity sector of the economy, the Nigerian Electricity Regulatory Commission (NERC) has approved and directed the 11 Electricity Distribution Companies (DisCos) to commence the collection of Service-Based Tariff (SBT) across the country, effective September 1, 2021.

ConsumerConnect learnt at the weekend that the move is targeted at increasing the cost of electricity by over 50 percent so as to pave way for the government to discontinue the reported subsidy on electricity.

The electricity DisCos have started to inform their customers, who have been clamouring for improved services and mass deployment of prepayment meters nationwide.

In a message to the firm’s customers Saturday, August 28, 2021, Olumide Anthony-Jerome, General Manager, Loss Reduction at Eko Electricity Distribution Company (EKEDC), disclosed that the tariff would be increased by between N42.44 and 58.94 per kilowatts, depending on their classification, reports Vanguard.

The company stated in the memo: “This is to officially notify you that there will be an increase in electricity tariff with effect from 1st September, 2021.

“This increase is a result of a nationwide mandate to implement the Service-Based Tariff approved by our regulator NERC.”

The EKEDC General Manager, Loss Reduction stated: “Kindly note that, the increase will be reflected on the energy bill for October 2021, which will represent energy consumption for September 2020.”

“In addition, for our metered customers with internal vending arraignments, we urge you to adjust the rates accordingly to reflect the new tariff increase as released by NERC.”

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