The Minister of Power, Adebayo Adelabu, has declared that customers not receiving at least 20 hours of electricity daily will not be subjected to the new tariff rates.
This assurance was given by the minister during his appearance before the Senate Committee on Power at a one-day investigative hearing concerning the proposed increase in electricity tariffs by eleven successor electricity distribution companies amidst Nigeria’s severe economic challenges.
Adelabu stated that the government has implemented a new policy to revive the struggling sector and reassured Nigerians that the hardships would be temporary.
This statement was made as electricity consumers are adjusting to the recent tariff increases by the Nigerian Electricity Regulatory Commission (NERC).
Moreover, the Minister mentioned that the Federal Government would need to spend ₦2.9 trillion on electricity subsidies this year unless the tariffs are revised.
During the hearing, the committee chairman, Senator Eyinnaya Abaribe, inquired about the process for transitioning customers from the previous classifications of Residential (R1, R2, R3), Commercial (C1, C2), and Demand (D1, D2) to different bands. He questioned whether the band classification adhered to legal standards and sought clarity on how the parameters vary by region and area, referring to a section of the act that emphasizes the necessity for non-discriminatory distribution.
This inquiry arises shortly after NERC’s recent decision to increase electricity tariffs for consumers in the Band A category, raising the rate from N68/KWh to N225/kWh. Customers in Band A typically receive 20-24 hours of electricity per day, those in Band B receive 16-20 hours, and Band C customers get 12-16 hours of power daily.