Financial Energy Review
Nigerian Electricity Regulatory Commission (NERC), has approved a hike in the electricity rates for consumers categorized under Band A. NERC has approved an increase of 300 per cent electricity tariff for Band A consumers in the country.
Accordingly, power distribution companies (DisCos) will be allowed to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68 for urban consumers this month effectively from April 1, 2024.
This is contained in a press statement by the Vice Chairman of NERC Musliu Oseni on Wednesday.
Oseni, the Vice Chairman of NERC, stated that the tariff hike would result in customers paying N225 per kilowatt hour, up from the existing N66.
He mentioned that these customers account for 15% of the 12 million electricity consumers in the nation.
He further stated that due to the failure to meet the necessary electricity supply hours, the commission has moved some Band A customers to Band B.
“We currently have 800 feeders that are categorised as Band A, but upon reviewing those feeders’ performance, the Commission has now reduced it to under 500. This means that 17% now qualify as Band A feeders. These feeders only service 15% of total electricity customers connected to the feeders.
“The commission has issued an order which is titled April supplementary order taking effect from today.
The commission now reviewed further the application by the distribution companies and have decided that only the 17% feeders and less than 15% customers will be affected by any rate increase that the commission will ever approve for the distribution company.
The order takes effect from today and in that order the commission has approved a rate review of N225 per killowatt hour for just under 15% of the customer population in NESI. That means that less than 15% of the customers will be affected.”
Only 15% consumers affected
Oseni also revealed that these customers, who represent 15 per cent of the population, also consume 40 per cent of the nation’s electricity.
