… to reduce subsidies for 2024 by NGN1.14 trillion
By Stella Odueme
The Federal Government has has approved a hike in electricity tariff for customers under the Band A classification who enjoy 20-hour power supply daily saying that the increase will reduce subsidies for the 2024 fiscal year by about NGN1.14 trillion.
On the other hand, all other customers under Band B to E service category and representing 85 per cent of customers population would not be affected by the current review of end-user tariffs, the Nigerian Electricity Regulatory Commission (NERC) has said.
A statement by the NERC Public Affairs Department on Wednesday in Abuja said all DisCos have been provided with mandatory targets for investments and migration of more customers to Band A service category.
It reads in parts;
“All other customers under Band B to E service category and representing 85 per cent of customers population would not be affected by the current review of end-user tariffs. All DisCos have been provided with mandatory targets for investments and migration of more customers to Band A service category.
“With the newly approved tariffs, subsidies for the 2024 fiscal year are expected to reduce by about NGN1.14 trillion in furtherance of the Federal Government’s realignment of the subsidy regime.
” Under the revised tariff Order issued by the Commission, DisCos are under an obligation to provide customers classified under Band A service category a minimum average supply of 20hrs/day measured over a period of one week.”
It noted that the; “the Commission has established a robust monitoring framework leveraging on technology to ensure that the public have visibility of the service covenant with their service providers.
” An enforcement and compensation mechanism has also been established, in the event of service failure.
“We wish to assure all Nigerians that the Commission working in collaboration with the policymakers remains committed towards providing adequate and reliable electricity to all citizens as we work diligently with state governments to deliver on the gains of the Electricity Act 2023.
“The overarching objective of the Commission in the consideration of the tariff application is the creation of a financially sustainable electricity market providing adequate and reliable power supply to drive the Nigerian economy.”
Also, media reports quoted the Vice Chairman of NERC , Musliu Oseni as saying that band A customers will now pay N225 kilowatt per hour from the current N66.
“We currently have 800 feeders that are categorised as Band A, but it will now be reduced to under 500. This means that 17 per cent now qualify as Band A feeders. These feeders only service 15 per cent of total electricity customers connected to the feeders.
“The commission has issued an order which is titled ‘April Supplementary Order’ and the commission allows a 225 kilowatt per hour.”
