Real reason NERC hiked electricity tariff from N66/kwh to N225/kwh

The Nigerian Electricity Regulatory Commission (NERC) has said the newly approved tariff is expected to reduce electricity subsidies for the 2024 fiscal year by about N1.14 trillion.

Mr Musliu Oseni, the Vice Chairman, NERC said this in a statement in Abuja on Wednesday.

”With the newly approved tariffs, subsidies for the 2024 fiscal year are expected to reduce by about NGN1.14 trillion in furtherance of the Federal Government’s realignment of the subsidy regime.”’he said.

Recall NERC had earlier on Wednesday announced increase in electricity tariff from N66/kwh to N225/kwh for those who enjoy electricity supply for 20 hours per day.

What the tariff hike from N68/KWh to N225/kWh means is that a consumer who uses 100 units of electricity monthly, and have been spending N6,800 previously, will now be spending N22,500 monthly for the same units of electricity.

NERC had explained that the tariff hike was only applicable to electricity consumers in Band A and that other customers in Bands B, C and D are not affected by the increase.

The commission also said that some customers on the Band A to Band B were downgraded due to the non-fulfillment of the required hours of electricity provided by the electricity distribution company.

Oseni said that the Federal Government had indicated a transition in policy direction towards introducing a more targeted subsidy regime aimed at mitigating the impact of changes in macroeconomic parameters

”While largely protecting vulnerable customers and fostering investments targeted at providing efficient service delivery in the Nigerian Electricity Supply Industry (NESI),” he said.