FG approves electricity tariffs hike for Band A customers

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The federal government, through the Nigerian Electricity Regulatory Commission (NERC), has approved an increase in electricity costs for Band A subscribers.

Musliu Oseni, Vice Chairman of NERC, issued a press statement on Wednesday.

Oseni, NERC’s Vice Chairman, indicated that the price increase will result in users paying N225 per kilowatt hour, up from the current N66.

He added that these users make about 15% of the nation’s 12 million electricity consumers.

He further added that due to a failure to achieve the required electrical supply hours, the commission has transferred some Band A consumers to Band B.

“We currently have 800 feeders that are categorised as Band A, but upon reviewing those feeders’ performance, the Commission has now reduced it to under 500. This means that 17% now qualify as Band A feeders. These feeders only service 15% of total electricity customers connected to the feeders.

“The commission has issued an order which is titled April supplementary order taking effect from today.

The commission now reviewed further the application by the distribution companies and have decided that only the 17% feeders and less than 15% customers will be affected by any rate increase that the commission will ever approve for the distribution company.

The order takes effect from today and in that order the commission has approved a rate review of N225 per killowatt hour for just under 15% of the customer population in NESI. That means that less than 15% of the customers will be affected.”

He, however, said that the review would not impact customers in the other Bands.