NERC Daring Electricity Tariff Rise
In a move that is set to significantly impact the electricity bills of high-income households, the Nigerian Electricity Regulatory Commission (NERC) has approved a substantial increase in electricity tariffs for customers classified under the elite “Band A” category. The announcement was made by Musliu Oseni, the vice chairman of NERC, during a press conference held in Abuja on Wednesday.
According to Oseni, customers falling under the Band A classification, who currently enjoy daily electricity supply for 20 hours, will now face a staggering 240% hike in their tariff rates. The new approved rate has been set at a staggering N225 per kilowatt (kW), a significant jump from the previous charge of N66 per kW.
This tariff increase is expected to have a substantial impact on the electricity bills of high-end residential estates, gated communities, and affluent apartments, which are typically occupied by wealthy individuals and categorized under the Band A classification by the NERC.
While the commission has defended the move as a necessary step towards achieving cost-reflective tariffs and reducing subsidies in the Nigerian power sector, the decision is likely to face criticism and backlash from the affected elite customer base, who will now have to bear the burden of substantially higher electricity costs.
As the implementation of the new tariff structure looms, it remains to be seen how households categorized under Band A will adjust to the significant increase in their electricity expenses, and whether this move will spur a broader conversation about equitable energy pricing and access in Nigeria.
Reference
Electricity tariff hike looms as FG raises gas price Published in Punch.