NERC increases power tariff for Band A consumers –Official

*The Nigerian Electricity Regulatory Commission discloses the latest increase will make electricity consumers on Band A, who enjoy power supply for 20 hours per day in the country, to pay N225 kilowatts per hour, up from the current N66

Isola Moses | ConsumerConnect

The Nigerian Government has announced an increment in the electricity tariff for Band A consumers.

ConsumerConnect reports  the Band A consumers are those who enjoy electricity supply for 20 hours per day in the West African country.

Musliu Oseni, Vice-Chairman of the Nigerian Electricity Regulatory Commission (NERC), at a media briefing Wednesday, April 3, 2024, in Abuja, FCT, said the increase would make electricity consumers to pay N225 kilowatts per hour, up from the current N66.

Oseni stated such electricity consumers in Band A represent 15 percent of the 12 million electricity customers in Nigeria.

The Vice-Chairman also noted that the Commission has downgraded some consumers on Band A to Band B due to their failure to fulfil the required hours of electricity provided by their respective electricity Distribution Companies (DisCos).

“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,” Oseni said.

He stated: “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.”

According to the NERC top official, the review will not affect customers on the other Bands in the power distribution and supply ecosystem in the country.

Agency report Tuesday, April 2 had said that power companies would be allowed to raise electricity prices to N200 ($0.15) per kilowatt-hour from N68 for urban consumers in Nigeria.

Referencing officials in the knowledge of the matter in the Presidency, the report noted this was in a bid to attract new investment and slash about $2.3 billion spent to cap tariffs (subsidies).

It also stated: “Nigerians will now have to pay $2.42 per one million British thermal units from the previous rate of $2.18 MMBtu.”

Likewise, the NERC announcement on tariff increment for consumers Wednesday is sequel to Monday’s announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of an increase in the base price of natural gas to power Generation Companies (GenCos).

According to the Energy Progress Report 2022 released by Tracking SDG 7. Nigeria had the lowest access to electricity globally, with an estimated 92 million of the country’s population lacking access to electricity supply.