NERC Explains Which Customers Will Experience Electricity Tariff Price Increase

NERC Explains Which Customers Will Experience Electricity Tariff Price Increase

The Nigerian Electricity Regulatory Commission (NERC) has clarified that the recently announced increase in electricity tariff by the government will not affect all Nigerians. According to Musiliu Oseni, the Vice Chairman of NERC, only a specific category of customers will be impacted by the tariff hike…..READ ALSO NERC Leads Transition To Liberalized Metering Market, Promoting Innovation And Investment”

Under the new arrangement, power distribution companies (DisCos) are permitted to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68 for consumers enjoying up to 20 hours of daily power supply, categorized under Band A. This adjustment is effective from April 1, 2024.

Oseni emphasized that the tariff increase will not apply to customers in Bands B, C, and D, thereby excluding a significant portion of electricity consumers from the hike. He noted that approximately 15% of electricity consumers nationwide fall under the category affected by the price adjustment.

Furthermore, Oseni disclosed that some customers previously classified under Band A have been downgraded to Band B due to their failure to meet the required hours of electricity provision by the distribution companies. This measure aims to protect consumers and ensure accountability from the DisCos.

To enforce the commitment to providing 20 hours of power supply to affected areas, DisCos are mandated to establish rapid response teams and publish their contact information for accessibility. Failure to meet this commitment for seven consecutive days will result in the immediate downgrade of the feeder’s service level.

Additionally, if a DisCo fails to fulfill its commitment for two days, it must provide an explanation to affected consumers via bulk SMS and submit the explanation to the commission for review.

These enforcement mechanisms are intended to hold DisCos accountable and ensure transparency in service delivery, thereby safeguarding consumers’ interests amidst the tariff adjustment.

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