BREAKING: FG increases electricity tariffs

NERC Orders Immediate Review of Tariff Increases, Effective April 3

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In a press conference held in Abuja, Musiliu Oseni, the Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), announced that there will be an instant review of tariff increases starting from Wednesday, April 3. The purpose of this review is to ensure that electricity tariffs are fair and reasonable for consumers.

Under the new directive, only Band A customers, who make up 15 percent of the population and receive an average daily electricity supply of 20 hours or more, will be subject to the revised rates. The intention is to target those customers who have a relatively consistent and reliable power supply.

In a January report, NERC highlighted that the Nigerian government would allocate up to N1.6 trillion in 2024 to subsidize electricity costs. This indicates a commitment to balancing the financial burden on consumers while also supporting the sustainability of the power sector.

Sanusi Garba, the Chairperson of NERC, outlined a new plan for power rates that customers across the country will have to pay. The order aims to establish tariffs that are both fair to customers and sufficient for electricity distribution companies (DisCos) to recover their operational expenses, including a reasonable return on their invested capital. This aligns with the provisions outlined in section 116 of the Electricity Act 2023.

the NERC’s decision to review tariff increases reflects a commitment to maintaining a balance between the financial viability of power companies and the affordability of electricity for Nigerian consumers.

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