Nigerian Electricity Regulatory Commission(NERC), on Wednesday increased the electricity tariff of ‘Band A’ customers from N70 to N225 for every kilowatt per hour (kWh).
The Vice Chairman of NERC, Musiliu Oseni, disclosed this in a talk with journalist , yesterday in Abuja, he stated that that this rate increase will only affect 15 percent of people consuming electricity
Band A customers are those that receive an average daily supply electricity supply 20 hours or more. With this new order issued by NERC, Band A would no longer enjoy Federal Government subsidy on electricity.
About two million households in Nigeria are set to bear the burden of an inefficient power sector due to this sudden increase in tariff price.
This comes amid indications that the price of prepaid meters may skyrocket to above N300,000 as manufacturers and the NERC push for a liberalised market.
Furthermore, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), just recently announced an increase in the price of natural gas, which fuels 70 percent of the country’s electricity generation.
“Increased electricity bills would leave consumers with less disposable income to spend on other goods and services. This could lead to reduced spending on non-essential items, impacting various sectors of the economy.