The Nigerian Electricity Regulatory Commission, NERC, has approved an increase in electricity tariffs for customers classified under Band A.
Customers in Band A, who currently pay N66 per kilowatt-hour, will now pay N225 per kilowatt-hour, according to Musliu Oseni,the Vice Chairman of NERC. Band A customers are those who receive 20 hours of electricity supply daily.
Oseni mentioned during a press briefing in Abuja on Wednesday that customers in Band A represent approximately 15% of the 12 million electricity customers in the country.
He added that the commission had also downgraded some customers on the Band A to Band B due to non-fulfilment of the required hours of electricity provided by the electricity distribution company.
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He 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 235 kilowatt per hour.”
He added that the review will not affect customers on the other Bands.
Citing sources, Bloomberg had on Tuesday reported that power companies will be allowed to raise electricity prices to N200 ($0.15) per kilowatt-hour from N68 for urban consumers.
The presidency is reportedly considering raising natural gas prices to attract new investment and reduce the $2.3 billion spent on tariff capping. The proposed increase would raise the price from $2.18 to $2.42 per one million British thermal units (MMBtu).
This move follows the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s announcement of a price hike for natural gas, which is crucial for generating over 70% of Nigeria’s electricity.
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