Reps Urge NERC to Halt Implementation of New Tariff

New Tariff

New Tariff; The Nigeria Electricity Regulatory Commission (NERC) has been instructed by the House of Representatives to halt the introduction of the new incremental pricing for Band A users.

This was decided upon by the lower house in a Tuesday plenary session during the house resolution.

They said that the resolution came about as a result of Kama Nkemkanma’s acceptance of a motion of urgent public significance.
You may remember that NERC increased Band A consumers’ electricity rates by 230 percent, from ₦68 per kWh to ₦225/kWh. Customers in Band A are those who receive electricity on a daily average for at least 20 hours.

NERC Vice Chairman Musliu Oseni mentioned in a release that 15% of Nigeria’s 12M energy users belong to Band A.

He stated that the commission reclassified some Band A customers to Band B due to insufficient electricity supply hours.

“The Commission has now lowered the number of feeders classified as Band A from 800 to under 500 after evaluating the performance of those feeders. Thus, 17% of them are now eligible to be Band A feeders. Just 15% of all electricity users linked to the feeders are served by these feeders.

The April supplemental order, which is effective today, was issued by the commission. Upon reviewing the distribution businesses’ application, the commission found that any authorized rate hike would affect only a minority.

“The commission has granted a rate review of ₦225 per kilowatt hour for somewhat less than 15% of the NESI customer population. The order is effective as of today, April 3. Thus, less than 15% of the clientele will be impacted, according to Oseni.

See also  Fresh move by CBN to float Naira sparks concerns in Nigeria’s forex market

Minister Adelabu assured Band A customers without 20 hours of electricity exemption from the new tariff during Senate hearing.

Leave a Reply

Your email address will not be published. Required fields are marked *