BREAKING: FG Approves Increase In Electricity Tariffs

NERC announces a significant increase in electricity tariffs, particularly affecting Band A customers, with rates rising from N66 to N225 per kilowatt-hour.

This adjustment follows the commission’s decision to reduce the number of Band A feeders, signaling a significant shift in electricity pricing structures.

In a groundbreaking development, the Nigerian Electricity Regulatory Commission (NERC) has authorized a substantial hike in electricity rates, particularly impacting customers in the Band A category.

VerseNews reports that the Vice Chairman Musliu Oseni revealed during a press conference in Abuja that the adjustment will see tariffs soar to N225 per kilowatt-hour from the previous rate of N66.

Moreover, NERC’s decision entails a reduction in the number of Band A feeders, resulting in a significant shift in electricity pricing structures.

“We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 percent now qualify as Band A feeders. These feeders only service 15 percent of total electricity customers connected to the feeders.

“The commission has issued an order which is titled April supplementary order and the commission allows a 235 kilowatt per hour.”

“The commission now reviewed further the application by the distribution companies and have decided that only the 17% feeders and less than 15% customers will be affected by any rate increase that the commission will ever approve for the distribution company.

“The order takes effect from today and in that order the commission has approved a rate review of N225 per killowatt hour for just under 15% of the customer population in NESI. That means that less than 15% of the customers will be affected.”

He, however, said that the review would not impact customers in the other Bands.