In response to widespread concerns over the recently announced increase in electricity tariffs by the Nigerian government, the Nigerian Electricity Regulatory Commission (NERC) has provided clarifications, stating that not all consumers will be affected by the hike.
The Federal Government, through NERC, approved a significant increase of 300 per cent in electricity tariffs for certain consumers, as disclosed by Musiliu Oseni, the Vice Chairman of NERC, in Abuja on Wednesday.
Under the new arrangement, power distribution companies (DisCos) will be permitted to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68 for affected consumers starting this month, effective April 1, 2024.
This move has triggered widespread reactions among Nigerians, who perceive the price hike as insensitive.
However, Oseni has stepped forward to explain that the increase in tariff will solely impact customers enjoying up to 20 hours of daily power supply across the country, specifically those falling within Band A. He emphasized that consumers in Bands B, C, and D will remain unaffected by the hike.
Oseni clarified that the increase will only impact approximately 15 per cent of electricity consumers nationwide.
Furthermore, he revealed that the commission had 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.
“We currently have over 800 feeders categorized as Band A, but this number will now be reduced to under 500. This means that only 17 per cent of the feeders now qualify as Band A,” Oseni stated.
He further explained that as part of enforcement mechanisms to ensure areas affected by the review receive 20 hours of supply, DisCos have been instructed to establish rapid response teams in feeder locations.
“These rapid response teams are to ensure that customers have access to DisCos. They have also been mandated to publish the contact details of the rapid response team where customers are located,” Oseni added.
Additionally, Oseni outlined repercussions for DisCos failing to meet their commitments, stating that feeders would be downgraded immediately if service levels are not maintained for seven consecutive days.
He emphasized that DisCos failing to meet commitments for two days must provide explanations to affected consumers and submit the same to the commission.
The NERC’s explanations aim to shed light on the limited scope of the electricity tariff hike and assure consumers of regulatory measures in place to safeguard their interests.
