Federal Government Increases electricity tariff for customers on Band A from N66 to N225 per kilowatt hour
During a press briefing held in Abuja on Wednesday, Musliu Oseni, the Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), revealed that there will be an increase in electricity prices. Customers will now have to pay ₦225 per kilowatt-hour, which is a significant increase from the current ₦66.
Oseni further explained that these price adjustments will only affect 15 percent of the 12 million electricity customers in the country. Additionally, the commission has downgraded some customers from Band A to Band B due to their failure to meet the required hours of electricity provided by the distribution company.
He stated, “We currently have 800 feeders categorized as Band A, but this number will be reduced to under 500. As a result, only 17 percent will now qualify as Band-A feeders. These feeders cater to only 15 percent of the total electricity customers connected to them.”
To facilitate this change, the commission has issued an order titled “April supplementary order,” which allows for a 235 kilowatt-hour consumption limit.
It is important to note that this price increase will not affect customers on other bands.
According to a report by Bloomberg on Tuesday, power companies will be permitted to raise electricity prices to N200 ($0.15) per kilowatt-hour for urban consumers, up from the previous N68. This decision, as stated by sources within the presidency, aims to attract new investments and reduce the $2.3 billion spent on tariff subsidies.
This increase in electricity prices follows the recent announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regarding the hike in natural gas prices for power generation.
