The Nigerian Electricity Regulatory Commission (NERC) has approved a significant increase in electricity tariff, raising it from N68 to N225 per kilowatt-hour, marking a 300 percent hike. This adjustment, effective from April 1, 2024, applies specifically to urban consumers categorized as Band A. The announcement was made by NERC's Vice Chairman, Musiliu Oseni, in Abuja.
Under this new tariff regime, power distribution companies (DisCos) are permitted to adjust their rates accordingly, aligning with the approved N225 per kilowatt-hour rate starting April 1. However, it's important to note that this increase will impact only 15 percent of electricity consumers in the country.
Oseni further explained that this 15 percent of consumers, classified under Band A, currently consume 40 percent of the nation's electricity. The NERC Service-Based Tariff (SBT) scheme, which was introduced on November 1, 2020, classifies consumers into different bands based on the number of hours of electricity supply per day.
The bands are as follows: Band A, which requires a minimum of 20 hours of supply; Band B, requiring a minimum of 16 hours; Band C, with a minimum of 12 hours; Band D, needing a minimum of 8 hours; and Band E, which requires a minimum of 4 hours of electricity supply per day.
