Shortly after the implementation of a new tariff regime that increased electricity prices by 231 percent for category A consumers, concerns have arisen regarding the ability of electricity supply to meet the new minimum benchmark of 20 hours per day. The 11 Electricity Distribution Companies (DisCos) were allocated just 3,236 megawatts (MW), which has constrained them from providing the minimum 20 hours of power supply to consumers under band A nationwide, a situation that has not improved since the new tariff came into effect.
The new Multi-Year Tariff Order (MYTO) raised electricity rates for about two million customers by 231 percent to N255 per kilowatt, from N68 per kilowatt. However, power generation has remained stranded at 4,200 Megawatts in the past seven days, indicating a gap between supply and demand.
Some DisCos have issued public apologies for the shortfall in supply, with Port Harcourt DisCo (PHEDC) acknowledging the service shortfall in areas where they did not meet contractual supply hours. In response to the challenge, Kaduna Electric has set up rapid response teams to ensure uninterrupted power supply to Band A customers and prompt fault resolution.
While some experts expect improvements in the supply situation, concerns have been raised about the fairness of billing, particularly for consumers without meters. The Lagos Chamber of Commerce and Industry (LCCI) has called for an aggressive metering program to ensure consumers pay for what they consume. The challenges faced by DisCos highlight the need for infrastructure investment and a sound regulatory environment to attract more investment into the power sector.
