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
