Electricity tariff for “band A” customers increased by 230.8%, from N68/kWh to N225/kWh

In about two years of tariff freeze in the power sector, the Federal Government on Wednesday, 03 March increased the rate paid per kilowatt hour (kWh) of electricity from about N68 to N225 for Band ‘A’ customers, who consistently enjoyed 20 hours of supply daily. Announcing the increment in Abuja, the power sector regulator, the Nigerian Electricity Regulatory Commission (NERC), stated that only about 15 per cent of the over 12 million registered power customers would be affected by the new decision. According to NERC, the decision to raise the tariff would also relieve the Federal Government of the burden of paying N240 billion per month and N2.9 trillion per year as electricity subsidy. Vice Chairman of the commission, Musiliu Oseni, who stood in for the chairman, Sanusi Garba, during the press briefing, stated that only a fraction of the over 3,000 Distribution Companies (Discos) feeders, that is less than 500 feeders, would be impacted. Oseni revealed that NERC had also ordered that most of the feeders, which did not meet the 20-hour supply threshold before now, would be downgraded to lower bands in a bid to protect consumers from exploitation. The vice chairman explained that for now, tariffs for every other band remained unaffected. Oseni recalled that last year, the commission received an application from the Discos for a review of their rates, explaining that as part of the rules, it conducted hearings where all stakeholders were present.