- The revised rate for the electricity tariff increase is now N225 per kilowatt-hour compared with the previous N66 price.
- The electricity tariff increase will not affect customers on other Bands.
The Nigerian Electricity Regulatory Commission (NERC) has approved the implementation of a new electricity tariff for Band A customers. Customers under Band A currently enjoy an average of 20 hours of electricity supply.
This approval, effective immediately, targets approximately 15 per cent of the 12 million electricity customer population.
During a press briefing in Abuja, the Vice Chairman of Market Competition Rates, Musiliu Oseni, said the customers will now pay N225 per kilowatt-hour compared to the previous N66 price. According to him, the review will not affect customers on the other Bands.
Oseni added that the commission had also downgraded some customers from 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 categorised as Band A, which will now be reduced to under 500. This means that 17 percent now qualify as Band A feeders. These feeders only service 15 per cent of the total electricity customers connected to the feeders.
“The commission has issued an order titled April supplementary order, and the commission allows a 225 kilowatt per hour,” he added.
On Tuesday, the federal government said they would permit electricity distribution companies to raise electricity prices to N225 ($0.15) per kilowatt-hour from N66 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, 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 amid Monday’s announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of an increase in the price of natural gas, used to generate more than 70 per cent of electricity in Nigeria.