NERC Approves 300% Tariff Increase for Band A Electricity Customers.

The Nigerian Electricity Regulatory Commission (NERC) has authorized an increase in electricity tariffs specifically for consumers falling under Band A classification. This decision, sanctioned by NERC, translates to a significant 300% surge in electricity rates for Band A consumers nationwide.

In a press statement issued by NERC‘s Vice Chairman, Musliu Oseni, it was revealed that the new electricity tariff for Band A customers will escalate to N225 ($0.15) per kilowatt-hour from the previous N68 for urban consumers. This adjustment is slated to come into effect from April 1, 2024.

Oseni elucidated that Band A customers, constituting 15% of the country’s 12 million electricity consumers, will now be subject to the N225 per kilowatt-hour rate, a substantial increase from the existing N66. He highlighted that due to insufficient electricity supply hours, some Band A customers have been reclassified to Band B.

“We currently have 800 feeders categorized as Band A, but upon reviewing their performance, the Commission has now reduced it to under 500. This means that 17% now qualify as Band A feeders, serving only 15% of total electricity customers connected to these feeders,” Oseni remarked during the announcement.

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The commission’s April supplementary order, effective immediately, specifies that only the 17% feeders and less than 15% of customers will be subject to the approved rate increase. This ensures that less than 15% of customers will bear the impact of the tariff adjustment, providing relief to the majority of consumers.

Oseni further disclosed that these Band A customers, comprising 15% of the population, consume a substantial 40% of the nation’s electricity, thereby justifying the targeted tariff adjustment.

The tariff revision aligns with ongoing efforts to streamline electricity pricing while ensuring equity and sustainability within the Nigerian electricity supply industry (NESI).