The Nigerian Electricity Regulatory Commission has agreed to increase the electricity tariff for customers in the Band A category.
Musliu Oseni, the Vice Chairman of NERC, mentioned that the increase means customers will now pay N225 per kilowatt-hour instead of the current N66.
PUNCH Online clarifies that Band A customers are those who receive 20 hours of electricity supply daily.
During a press briefing in Abuja on Wednesday, Oseni mentioned that customers in Band A make up 15% of the 12 million electricity customers in the country.
He also stated that the commission has downgraded some Band A customers to Band B due to not meeting the required hours of electricity provided by the distribution company.
He mentioned, "We currently have 800 feeders categorized as Band A, but it will now be reduced to under 500. This means that 17% now meet the criteria for Band A feeders. These feeders only service 15% of total electricity customers connected to them."
"The commission has issued an order called the April supplementary order, allowing a 235 kilowatt per hour rate," he added.
He also mentioned that the review will not impact customers in other bands.
According to reports from Bloomberg on Tuesday, power companies will be permitted to increase electricity prices to N200 ($0.15) per kilowatt-hour from N68 for urban consumers.
Citing sources in the presidency, Bloomberg stated that this move aims to attract new investment and reduce the $2.3 billion spent to cap tariffs.
The news agency reported, "Nigerians will now have to pay $2.42 per one million British thermal units, up from the previous rate of $2.18 MMBtu."
This comes as the Nigerian Midstream and Downstream Petroleum Regulatory Authority announced on Monday an increase in the price of natural gas, which is used to generate over 70% of electricity in Nigeria.
