The Nigerian Electricity Regulatory Commission (NERC) has stated that the newly approved electricity tariff is anticipated to cut down the subsidy for the fiscal year 2024 by approximately N1.14 trillion.
Mr. Musliu Oseni, the Vice Chairman of NERC, made this announcement in a statement in Abuja on Wednesday.
However, according to Oseni, the Federal Government has shown intentions of transitioning to a targeted subsidy regime to alleviate the effects of macroeconomic changes.
Furthermore, Oseni explained that the commission undertook a detailed assessment of the tariff proposals submitted by the 11 Electricity Distribution Companies (DisCos), adhering to its established regulations and business rules.
He mentioned that before the review process, there was an examination of the performance improvement plans of the licensees, which also encompassed a public hearing.
During this hearing, stakeholders and interveners scrutinized the rate filing presented by the public utilities.
Oseni said that empirical service data had confirmed that this class of customers had truly received the committed level of service.
He added that a mechanism for enforcement and compensation has been set up to address service failures.
Earlier, Nairametrics reported that the federal government through the Nigerian Electricity Regulatory Commission (NERC) raised the electricity prices to N225/KWh for consumers classified as Band A.
This is contained in a press statement by the Vice Chairman of NERC Musliu Oseni on Wednesday.
Oseni stated that these customers represent 15% of the nation’s 12 million electricity consumers.
He added that because the required electricity supply hours were not met, the commission shifted some customers from Band A to Band B.
He, however, said that the review would not impact customers in the other Bands.