By William Emmanuel Ukpoju
In a recent development, the Nigerian Electricity Regulatory Commission (NERC) has announced a tariff increase for electricity consumers under Band A category. Effective immediately, customers in this bracket will be subject to a tariff of N225/kWh.
This category includes households benefiting from up to 20 hours of electricity supply per day, NERC sources have revealed.
NERC, responsible for regulating the electricity sector in Nigeria, disclosed that approximately 15 per cent of the nation’s electricity consumers fall within the Band A classification.
In response to concerns about potential over-billing due to the tariff adjustment, NERC has reassured customers of their commitment to rapidly deploying meters across Band A households.
Valuechain reports that the aim is to ensure accurate billing and transparency in the billing process, particularly in light of the new tariff structure. NERC clarified that the metering rate within this category is expected to reach up to 80 per cent.
This tariff revision comes on the heels of a recent increase in the base price for natural gas by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The cost of natural gas, a vital fuel source for electricity generation in Nigeria, has risen from $2.18 to $2.42 per metric million British thermal unit (mmbtu).
This increase in gas prices has likely influenced the decision to adjust electricity tariffs, reflecting the interconnectedness of energy markets in the country.