Tariff Increase only for Customers Enjoying 20-Hour Power Supply, Says NERC

Tariff Increase only for Customers Enjoying 20-Hour Power Supply, Says NERC

The Nigerian Electricity Regulatory Commission (NERC) clarified today that the recent tariff increase will solely affect customers benefitting from 20-hour power supply across Nigeria, excluding those in Bands B, C, and D.

Mr. Musliu Oseni, Vice Chairman of NERC, made this announcement during a press briefing in Abuja. He stated that the commission has sanctioned the tariff hike for Band A customers, raising the rate from N68/KWh to N225/KWh. However, customers in Bands B and C will remain unaffected by this adjustment.

Oseni emphasized that only approximately 15% of electricity consumers, proven to enjoy 20 hours of daily power supply, will be impacted by the increase. He assured that other electricity consumers not affected by the rate revision would continue to receive service as usual.

Furthermore, Oseni revealed that some customers previously classified as Band A have been downgraded to Band B due to the failure of electricity distribution companies (DisCos) to meet the required service standards.

He stated, “We currently have over 800 feeders categorized as Band A, but it will now be reduced to under 500. This means that 17% of the feeder now qualifies as Band A.” Oseni stressed that this action aims to protect consumers from receiving inadequate service.

As part of enforcement measures, DisCos have been instructed to establish rapid response teams in locations where the affected feeders are situated. This step ensures that customers have access to DisCos and receive the committed 20 hours of power supply. DisCos failing to meet this commitment for seven consecutive days will face immediate feeder downgrading.

Moreover, Oseni highlighted that DisCos failing to meet the commitment for two days must publish an explanation via bulk SMS to affected consumers and submit the explanation to the commission by the third day at 10 am.

The commission’s decision aims to uphold service standards and ensure transparency in the electricity sector.

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