The Nigerian Electricity Regulatory Commission (NERC) has imposed a tariff raise on Band A consumers of electricity. The new rate will be N225/kWh, as against the previous charge of N66.
GistReporters.com understood that his modification will affect those who use more than 20 hours electricity daily in their households.
Musliu Oseni, Vice Chairman of NERC, was quoted by THISDAY at a press conference in Abuja as saying that such consumers make up 15% or approximately 1.8 million of the country’s about 12 million power subscribers.
Oseni also indicated that some of these customers classified under Band A would be re-categorized to B due to lack of supply by the Distribution Companies (DisCos). He noted too that the number of feeders on band A will reduce from 800 to less than five hundred showing only seventeen percent meet band A requirements now. These feeders account for about fifteen percent of total power customers in Nigeria.
Meanwhile, an “April Supplementary Order” issued by the commission has allowed for a rate of two hundred and twenty five kilowatts per hour. However, he assured that it would not cut through other bands and charges.
Bloomberg had reported on the news that power companies have been given permission to raise the cost of electricity for city dwellers from N68 per kilowatt-hour to N200 ($0.15) by unnamed sources in the presidency, who are not named. The aim of this move is to attract new investments and cut down on a $2.3 billion subsidy spent on tariffs.
It emerged from Bloomberg’s report that Nigerians would suffer a new rate increase from $2.18 to $2.42 for one million BTUs (British thermal units) after Nigerian Midstream and Downstream Petroleum Regulatory Authority made an announcement calling for gas price hike. In terms of energy production, this represents a major breakthrough considering that this fuel drives more than 70% of the total power generated within Nigeria.