The Nigerian Electricity Regulatory Commission (NERC) has sent shockwaves across the country by approving a significant increase in electricity tariffs for Band A classification customers.
This move, announced by NERC’s Vice Chairman, Musliu Oseni, will see Band A customers paying N225 per kilowatt-hour (kWh), a sharp rise from the current rate of N66/kWh.
Band A customers, who typically enjoy 20 hours of electricity supply daily, represent around 15% of the country’s 12 million electricity consumers.
However, the commission has also downgraded some customers from Band A to Band B due to the failure of electricity distribution companies to meet the required hours of electricity provision.
Oseni revealed that out of the 800 feeders classified as Band A, this number will be reduced to under 500, indicating that only 17% will qualify as Band A feeders.
This reduction is aimed at ensuring that only the most deserving customers benefit from the Band A classification.
The decision by NERC has ignited widespread concern and debate among consumers and stakeholders alike.
Many fear the financial burden this tariff hike will place on Band A customers, particularly in light of economic challenges facing the nation.
Also, the move comes amid reports of an increase in the price of natural gas, which is used to generate the majority of Nigeria’s electricity.
With the tariff increase set to take effect soon, citizens are bracing themselves for the impact on their household budgets and livelihoods.
