By Seyi Babalola
Following the approval of a 250 percent increase in electricity tariffs by the Nigerian Electricity Regulatory Commission on Wednesday, here are what Nigerians should know about the increase.
Remember that NERC granted N225 per kilowatt for ‘Band A’ power users in Nigeria.
The decision signifies a substantial shift away from electricity subsidies in Nigeria’s electrical supply industry, plagued by intermittent power delivery throughout the country.
Customers Affected By Hike
NERC stated that only Band A consumers received at least 20 hours of power from the eleven electrical distribution providers.
According to Musiliu Oseni, Vice Chairman of NERC, just 15 percent of Nigeria’s 12.12 million electrical users are affected.
He clarified that the rate increase would not affect consumers in B, C, D, and E who had fewer than 20 hours of electricity supply.
Implication of New Electricity Tariff
The hike implies that electricity consumers under Band A will pay 250 per cent more to get a power supply.
This means a complete electricity subsidy removal for customers under Band A.
Band A customers fall within 15 per cent of households in Urban areas in Nigeria.
According to NERC, Band A customers consume 40 per cent of electricity in the country.
However, the hike will not lead to an improvement in the electricity supply to the affected customers.
Date of hike commencement
According to the revised tariff regulation, Discos began implementing the new power pricing on Wednesday, April 3rd, 2024.
This implies that users in Band A have started paying 300 percent extra for power.
Meanwhile, starting January 2024, Nigerian clients across all bands have experienced epileptic power supplies.
Adebayo Adelabu, Nigeria’s Minister of Power, blamed the country’s unpredictable power supply on gas shortages.
