The Nigerian Electricity Regulatory Commission (NERC) has approved the increase of electricity tariff for customers under the Band A classification.
Band ‘A’ consumers are those who enjoy 20 hours of electricity supply daily.
Under the new tariff regime, the affected consumers are expected to pay N225 per kilowatt per hour from the current N66.
Speaking at a press briefing in Abuja on Wednesday, the Vice Chairman of NERC, Engineer Musliu Oseni, said the affected customers represent 15 per cent of the 12 million electricity customers in the country.
He added that the commission had also downgraded some customers on Band A to B And B due to non-fulfilment of the required hours of electricity provided by the electricity distribution company, and added that the review will not affect customers on the other bands.
Oseni said: “We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent now qualify as Band-A feeders. These feeders only service 15 per cent 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 225 kilowatt per hour.”
He, however, said the increase of tariff for Band A customers will bring some incentives to ensure they won’t be shortchanged by the distribution companies.
“For other customers, are they neglected? No, but not for up to 20 hours. Some targets have been provided for the distribution companies which the commission will monitor and review from time to time to ensure the migration of other customers for better service.
“As part of the enforcement mechanism, the rate which will be paid which is N225 is just about three times the existing rate, which requires the customers to get the service, we will be using technology to ensure that we get access directly to the distribution system and it will be gotten from the masters installed on the feeders.
“Secondly, the order provides that the DisCos must publish the seven-day rolling average of service delivery on each of the feeders of their website.”
Tariff increment in order- Powerup Nigeria convener
Reacting to the new tariff regime, the convener and Executive Director of PowerUp Nigeria, Consumer Right, and Power Sector Policy Advocacy Organisation, Mr Adetayo Adegbemle, told Blueprint that the increment in the electricity tariff is in order because of the hike in gas price.
He said: “This increment is a long time coming. We have spoken so much about the Federal Government not being able to continue to carry the huge subsidy on electricity, and this is for them acknowledging everything we have been telling them.
“It is not about helping the Distribution Companies, it is about appropriate pricing for electricity. This pricing is also along the whole value chain, you will recall that gas pricing also recently changed, so there’s no way the price of electricity will remain the same, especially with all macro-economic indices having also increased.”
Tariff adjustment inevitable – Expert
Also speaking to our reporter, a legal practitioner and power sector policy analyst, Mr. Bode Fadipe, said the new tariff adjustment was inevitable because of what he called a hostile business environment, and queried why the adjustment was limited to the Band A consumers alone.
“The tariff adjustment is inevitable given the hostile business environment, which also affects the power sector. However, I am concerned about the fact that the adjustment is limited to Band A customers who are just 15% of the CP but consume 40% of the load according to the Regulator.
“Given the fact that Band A customers are just 15%, it means the government is ready to subsidise the cost of electricity for 85% of the customer population who are consuming 60% of the load. Is the government ready for this?” he asked.