NERC clarifies increase in electricity tariff, targets 20-hour power supply consumers

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The Nigerian Electricity Regulatory Commission (NERC) has clarified that the proposed increase in electricity tariff will only affect customers enjoying a 20-hour power supply, categorised under B and A, across the country.

Mr. Musliu Oseni, Vice Chairman of NERC, announced this during a Wednesday press briefing in Abuja.

Oseni explained that the approved increase in electricity tariff applies specifically to Band A customers, raising the rate from N68 per kilowatt-hour (KWh) to N225 per KWh.

However, he assured that the tariff adjustment would not affect customers in Bands B and C.

Highlighting the rationale behind the decision, Oseni noted that only about 15% of electricity consumers confirmed to receive 20 hours of power supply daily fall under Band A.

He emphasised that other electricity customers not affected by the rate review would continue to receive uninterrupted service.

Furthermore, the vice chairman revealed that NERC had downgraded some customers from Band A to Band B due to electricity distribution companies (DisCos) failing to meet the required hours of electricity provision.

He disclosed that over 800 feeders initially classified as Band A would be reduced to under 500, with 17% now qualifying as Band A.

Oseni underscored the importance of ensuring compliance with the revised tariff structure, stating that DisCos have been directed to establish rapid response teams in areas where the affected feeders are located.

“These teams will ensure prompt resolution of any electricity supply issues,” he noted.

“In addition to setting up rapid response teams, DisCos are mandated to publish the contact information of these teams for consumers to make them easy to access.

“Failure to maintain the committed service level for seven consecutive days will result in the immediate downgrade of the feeder.

“DisCos, failing to meet the commitment for two days, must provide explanations to consumers and submit them to NERC,” he added.

Oseni emphasised the commission’s commitment to transparency and accountability in the electricity sector, urging DisCos to adhere to the regulations and promptly address any shortcomings in service delivery.

News.ng had earlier reported that the International Monetary Fund (IMF) recommended the complete phase-out of electricity subsidies to the Federal Government of Nigeria.

In its ‘Post Financing Assessment’ report, the IMF acknowledged the hardship experienced by Nigerians and suggested that the government’s move to restore macroeconomic stability should include the removal of both fuel and electricity subsidies.

The report highlighted the significant financial impact of subsidies, emphasising the need for Nigeria to overcome economic challenges and create conditions for sustained, inclusive growth.