…. new tariff affects only band A electricity consumers

The Nigerian Electricity Regulatory Commission (NERC) has greenlit a substantial 300% increase in electricity tariffs for Band A customers across various Electricity Distribution Companies (DisCos).

Musiliu Oseni, Vice Chairman of NERC, made this known during a press briefing announcing the directive in Abuja.

According to him, the rate increase will only affect 15 per cent of the electricity customers in the country.

Oseni also revealed that these customers, who represent 15 per cent of the population, also consume 40 per cent of the nation’s electricity.

He revealed that NERC has downgraded some electricity customers from Band A to Band B following DisCos’ failure to fulfill the market requirement.

He said, ” We have over 800 feeders that are categorized as Band A, but it will be reduced to around 500 feeders.

“NERC has consequently issued a tariff directive titled ‘April Supplementary Order’ allowing a N225 kilowatt per hour”, the NERC Vice Chairman said.

 Advisors Reports’ analysis of the development showed that Electricity Distribution Companies (DisCos) could leverage the recent 300% tariff hike to optimize their operations.

The DisCos might strategically reconfigure their feeders to target Band A consumers, particularly those in industrial zones and upscale neighborhoods.

This strategic shift aims to boost revenue generation and minimize losses for the companies.

In light of this, DisCos are expected to prioritize fault repairs, infrastructure upgrades, and meter installations on Band A feeders.

By focusing on this segment, DisCos aim to recover costs more effectively and enhance service delivery.

The categorization of minimum hours of supply for each band is as follows

Band A: Minimum of 20 Hours

Band B: Minimum of 16 Hours

Band C: Minimum of 12 Hours

Band D: Minimum of 8 Hours

Band E: Minimum of 4 Hours

Details later…..