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Federal government increases electricity tariff from N68/KwH to N225
NERC Service-Based Tariff, SBT, scheme classifies consumers based on the number of hours of electricity supply per day.
The Nigerian Electricity Regulatory Commission (NERC) has approved an increase in the electricity cost to N225 ($0.15) per kilowatt-hour from N68. This is a 300 percent increase that takes effect on April 1, 2024.
However, it will be limited to urban consumers, commonly known as Band A consumers in the country.
The Vice Chairman of NERC, Musiliu Oseni, made this remark in Abuja.
As a result, power distribution firms (DisCos) are permitted to boost electricity tariffs to N225 ($0.15) per kilowatt-hour beginning April 1.
Oseni further stated that the rate rise will effect only 15% of the country’s electrical subscribers.
Oseni also revealed that the 15 percent customers consume 40 percent of the nation’s electricity.
Band A
NERC Service-Based Tariff, SBT, scheme classifies consumers based on the number of hours of electricity supply per day.
SBT, introduced on the 1st of November 2020, classifies consumers into Bands A to E as follows:
- Band A: Minimum of 20 Hours
- Band B: Minimum of 16 Hours
- Band C: Minimum of 12 Hours
- Band D: Minimum of 8 Hours
- Band E: Minimum of 4 Hours
We will bring you more details on the current electricity tariff hike as they come.
