FG Announces Rise in Electricity Tariff
In a significant development, the Nigerian Electricity Regulatory Commission (NERC) has approved an increase in electricity tariffs for customers falling under the Band A category. The decision was unveiled during a press briefing held in Abuja on Wednesday, with the Vice Chairman of NERC, Musliu Oseni, making the announcement.
Effective immediately, customers in the Band A category will witness a surge in their electricity rates, with the new tariff set at N225 per kilowatt-hour. This marks a notable escalation from the previous rate of N66 per kilowatt-hour.
Addressing the rationale behind the decision, Oseni explained that the adjustment aims to streamline the categorization of electricity feeders. He disclosed that the number of feeders designated as Band A would be reduced from 800 to under 500. This restructuring is expected to result in only 17 percent of feeders falling under the Band A classification, catering to 15 percent of the total electricity customers connected to these feeders.
Elaborating further, Oseni mentioned that the commission has issued an order titled “April supplementary order,” which permits a maximum consumption limit of 235 kilowatt-hours.
The decision to increase electricity tariffs for Band A customers underscores ongoing efforts by regulatory authorities to optimize the electricity distribution system and ensure fair and sustainable pricing structures across different consumer categories. However, the move is likely to evoke mixed reactions among consumers, with concerns raised about its potential impact on household budgets and the overall cost of living.
As stakeholders assess the implications of this tariff adjustment, discussions on the broader implications for the electricity sector and consumer welfare are expected to intensify in the coming days.
