FG increases electricity tariff from N68/KwH to N225

by John Ojewale
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The Nigerian Electricity Regulatory Commission (NERC) has approved an increase in the electricity cost to N225 ($0.15) per kilowatt-hour from N68. This is a 300 percent increase that takes effect on April 1, 2024.

However, it will be limited to urban consumers, commonly known as Band A consumers in the country.

The Vice Chairman of NERC, Musiliu Oseni, made this remark in Abuja.

As a result, power distribution firms (DisCos) are permitted to boost electricity tariffs to N225 ($0.15) per kilowatt-hour beginning April 1.

Oseni further stated that the rate rise will effect only 15% of the country’s electrical subscribers.

Oseni also disclosed that the 15% of customers use 40% of the nation’s electricity.

The NERC Service-Based Tariff (SBT) structure classifies consumers based on their daily power supply hours.

SBT, established on November 1st, 2020, separates consumers into Bands A to E as follows:

Band A: Minimum of 20 Hours
Band B: Minimum of 16 Hours
Band C: Minimum of 12 Hours
Band D: Minimum of 8 Hours
Band E: Minimum of 4 Hours

 

 

 

 

 

 

 

cc: Vanguard Ng

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