In a recent announcement, the Nigerian Electricity Regulatory Commission (NERC) has sanctioned a substantial increase in electricity tariffs for consumers categorized under Band A. This decision, disclosed by NERC’s Vice Chairman, Musliu Oseni, marks a significant shift in pricing dynamics.
Effective immediately, customers falling within Band A will be subjected to a revised tariff of N225 per kilowatt hour, a notable surge from the previous rate of N66. This adjustment, albeit impacting 15% of the nation’s 12 million electricity consumers, signals a crucial development in the energy landscape.
Oseni emphasized that the rationale behind this tariff revision stems from the imperative to address the challenges of inadequate electricity supply.
As a consequence of failing to meet the requisite supply hours, certain Band A customers will be reassigned to Band B, altering their billing structures.
Assurances have been made regarding the limited impact on customers outside of the targeted Band. This statement comes amidst brewing anticipation surrounding a potential surge in electricity rates, designed to attract vital investments into the sector.
Previously, Nairametrics reported on the impending implementation of a nearly 300% increase in electricity tariffs, highlighting the government’s strategic move to incentivize investment influx. Insider sources hinted at a probable hike in tariffs for urban consumers, potentially reaching N200 per kilowatt hour from the current N68.
Urban dwellers, comprising 15% of the population yet consuming a substantial 40% of the nation’s power, are expected to bear the brunt of these adjustments, as per anonymous disclosures.
Adding to the intrigue, Bayo Onanuga, the Special Adviser to the President on Information and Strategy, provided insights to Bloomberg, indicating an imminent announcement by the Nigerian Electricity Regulatory Commission (NERC) regarding tariff adjustments.
Onanuga emphasized the government’s non-intervention stance, affirming NERC’s autonomy in navigating discussions with distribution and generating companies.
“The regulator will make any pronouncements based on its discussion with the distribution and generating companies. The presidency cannot say anything at this stage,” Onanuga clarified.
Credit: Nairametrics
Definition of a foolish Country – A Country that subsidizes it’s hajj pilgrimage that is not productive, but is cutting off subsidy on electricity that powers other productive sector.