Nigerians To Pay More For Electricity As FG Implements New Tariff Band.
Nigerians who consume energy generated with electricity are already expecting another round of tariff increase, as the Federal Government proceeds with another electric energy tariff scheme. The Nigerian Electricity Regulatory Commission (NERC) has affirmed that individuals under some bands will henceforth pay much more significant amount of money on power supply- with immediate effect.
“Customers under Band A, who enjoy at least 20 hours of electricity daily, will now pay ₦225/kWh instead of ₦68,”
— NERC Chairman, Sanusi Garba, at a recent press briefing.
Source: Punch Newspapers
The tariff review influences the consumers who are those who fit in the so-called so-called band A, specifically, the areas with a relatively stable electricity supply. This will comprise high income residential estates, government offices and a few business centers. The difference of the increase of rates by 68/kWh to 225/kWh is almost 230 percent which caused outrage on the part of the people and even the economy.
The twist is that at Band B to E (those using less hours of electricity a day) will not be affected at all at least not in the eyes of the authorities. This implies a stratified pricing system in which the more you receive the lights, the higher the payment.
What Nigerians say
There are immediate and emotional responses. This is seen by many as a punishment due to a consistent power, others have indicated that this is a step to cost-reflective tariffs. Small businesses which use power to run their daily operations- particularly in Lalos, Abuja and Port Harcourt- are already taking to court that overhead will rise and this may prompt hiking of the prices of goods and services.
What you ought to know : Businesses: It will cost you more and especially when you insist on using the grid energy during business hours. Band A households: Get ready to cough more at the bills- even when your earnings have not gone up.All the others: A reminder that Band B-E, also, may soon see piecemeal increases.
This may also revive the interest in solar and off grid energy as Nigerians seek alternatives that are more stable and cheap.
This new tariff is one of the wider reform agenda which will liberalize the power sector in Nigeria. The question of whether it leads to the improvements in electricity quality or not remains to be answered. At least, at this point it is obvious that secure power is not cheap anymore.