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Electricity Tariff: NERC Specifies Customers Affected By Price Increase

Published

9 months ago

Apr 4, 2024.

Eko Hot Blog reports that the Nigerian Electricity Regulatory Commission (NERC), has explained that not all Nigerians would be affected by the recently-announced increase in electricity tariff by the government.

The Federal Government, via the Nigerian Electricity Regulatory Commission (NERC), approved an increase of 300 per cent in electricity tariff for some consumers as revealed on Wednesday by the Vice Chairman of NERC, Musiliu Oseni, in Abuja.

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By the new arrangement, Power distribution companies (DisCos) will be allowed to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68 for affected consumers this month effectively from April 1, 2024.

File Image of Minister of Power Adebayo Adelabu

The development has sparked reactions from Nigerians who consider the price hike as insensitive.

But Oseni has come out to explain that the increase in tariff will only affect customers enjoying up to 20 hours of daily power supply across the country who are in band A. He emphasized that the hike won’t affect other customers in Bands B, C and D.

Oseni said that the increase only affects about 15 per cent of electricity consumers nationwide.

The vice chairman said that the commission had also downgraded some customers on the Band A to Band B due to the non-fulfillment of the required hours of electricity provided by the electricity distribution company.

“We currently have over 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent of the feeder now qualifies as Band A.

“The commission using technology discovered that many of the feeders that the Electricity Distribution Companies (DisCos) currently brandish as Band A are not meeting the required service and as such.

“ The feeders were ordered to be downgraded immediately as a way of protecting consumers,” he said.

He said that as part of enforcement mechanisms to ensure that areas affected by the review get the 20 hours supply, DisCos have been mandated to set up rapid response teams in locations where the feeders are located.

“This is to ensure that the customers can have access to the DisCos.

Nigerian Electricity Regulatory Commission Logo

“They have also been mandated to publish the contact of the rapid response team where the customers are located.

“Failure to meet the commitment for seven consecutive days, the feeder will be downgraded immediately to the service level the DisCos is able to provide electricity to the feeder,” he said.

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Oseni said where a DisCo failed to meet the commitment for two days by the third day at 10am, the company must publish an explanation also via bulk SMS contacting the affected consumers on the feeder.

“They should explain why they could not meet the service for the two days and also submit the explanation to the commission,” he said

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