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Electricity Tariff Increased by FG for Customers with 20-hour Power Supply

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Approval has been given by the Nigerian Electricity Regulatory Commission for an increase in electricity tariff for customers falling under the Band A categorization.

Per the Vice Chairman of NERC, Musliu Oseni, customers in this band will now be charged N225 per kilowatt-hour as opposed to the previous N66.

Customers enjoying 20 hours of daily electricity supply fall under Band A, as per information from PUNCH Online.

During a recent press briefing in Abuja, Oseni mentioned that Band A customers make up 15% of the 12 million electricity consumers in the country.

Furthermore, he informed that some customers in Band A have been downgraded to Band B for not meeting the stipulated electricity supply hours by the distribution company.

He disclosed, “Previously, we had categorized 800 feeders as Band A, but this number will now be reduced to below 500. This translates to 17% now falling under Band A feeders, catering to only 15% of the total electricity customers connected to the feeders.

“The commission has issued an order known as the April supplementary order which permits a 235 kilowatt-hour rate.”

He clarified that this revision will not impact customers in other bands.

According to reports from Bloomberg, power companies will be allowed to hike electricity prices to N200 ($0.15) per kilowatt-hour from the current N68 for urban consumers.

Sources within the presidency stated that this move aims to attract new investments and reduce the $2.3 billion spent on capping tariffs.

The news agency reported, “Nigerians will now need to pay $2.42 per one million British thermal units compared to the previous rate of $2.18 MMBtu.”

This development follows the recent announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority regarding the increase in the price of natural gas, a key element in generating over 70% of electricity in Nigeria.

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