The Nigerian Electricity Regulatory Commission (NERC) has given the go-ahead to raise the electricity rates for customers in the Band A category.
During a press briefing in Abuja on Wednesday, Musliu Oseni, the vice chairman of NERC, announced that there will be a rise in electricity tariffs.
This adjustment will result in customers paying N225 per kilowatt-hour, up from the current rate of N66, which represents approximately 241% increase.
“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.”
Recall that Bloomberg, a frontline Media outfit, had reported Nigerian government’s plans to increase electricity tariff by “not less than 300%”.
According to the news agency, “Nigerians will now have to pay $2.42 per one million British thermal units from the previous rate of $2.18 MMBtu.”
The world respected media platform, quoted people in the presidency with knowledge of the matter saying the increase in electricity tariff was in a bid to attract new investment and slash about $2.3 billion spent to cap tariffs (subsidies).
Although. It noted that Power companies will be allowed to raise electricity prices to N200 ($0.15) per kilowatt-hour from N68 for urban consumers this month citing sources, reported Tuesday.
It was learnt that these customers represent 15% of the population that the government says consume 40% of the nation’s electricity, the agency said.
This revelation is coming on the heels of Monday’s announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of an increase in the price of natural gas, which is used to generate more than 70% of electricity in Nigeria.
NMDPRA had set a new 2024 base gas price for companies in the power sector and commercial users. This was contained in a statement signed by Farouk Ahmed, the authority’s chief executive.
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