Electricity Bill Increase for Band A Customers in Nigeria

Attention Band A Customers in Nigeria: Electricity bills are set to increase slightly starting July 1st, 2024. The Nigerian Electricity Regulatory Commission (NERC) approved this adjustment, raising the tariff from N206.80 to N209.50 per kilowatt-hour (kWh) to reflect changes in electricity generation and distribution costs.

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Reason for an increase in the electricity bill for Band A customers?

NERC, the National Electricity Regulatory Commission, plays a crucial role in maintaining a stable electricity market by regularly reviewing and adjusting tariffs. The price of gas, often utilized in power generation, is a significant determinant of electricity costs. Fluctuations in gas prices can directly impact the cost of producing electricity. In addition, exchange rates have a significant influence on power plants since they heavily depend on imported equipment and fuel, which are frequently priced in foreign currencies. Whenever there are substantial increases in gas prices or exchange rates, NERC proactively adjusts the tariff to adapt to the changes. This ensures that electricity providers can cover their costs and maintain a reliable electricity supply to consumers. By closely monitoring these factors and conducting regular tariff reviews, NIGERIAN ELECTRICITY REGULATORY COMMISSION, NERC aims to create a stable, fair electricity market for consumers and providers.

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What About Band B & Band C

Band A customers, are the ones that consume the highest amount of electricity, will experience a price change. However, this adjustment will not affect customers falling under Bands B, C, D, and E, as their prices will remain unchanged. This targeted price change aims to address the increased costs associated with higher electricity usage, ensuring that those who consume more electricity bear the additional expenses while providing stability for customers in the lower consumption bands.

What to Expect?

• The new rate applies to both prepaid and postpaid customers.
• Band A customers on feeders with guaranteed 20-24 hour power supply can expect this service to continue.
• Electricity distribution companies are committed to providing reliable service while managing costs.

For Your Information:

• This is the third adjustment for Band A customers in recent months, reflecting changing economic conditions.
• NERC uses a Multi-Year Tariff Order (MYTO) to set electricity prices. The MYTO allows for adjustments based on economic factors.

Read Also: June 2024 Supplementary Order to The Multi-Year Tariff Order (MYTO) 2024

Did FG increase the electricity tariff for Band A customers?

The Vice Chairman of NERC, Musliu Oseni, announced that the increase will result in customers paying N225 kilowatt per hour, up from the current N66. PUNCH Online notes that customers under Band A are those who receive 20 hours of electricity supply daily.

What is Band A Electricity in Nigeria?

Band A ensures a minimum of 20 hours of electricity supply per day. Before the tariff adjustment, the Nigerian government covered 67% of the overall expenses related to producing, transmitting, and delivering electricity.

How many hours is band C electricity?

12 Hours

Band C: Minimum of 12 Hours.

How do you check if you are on Band A?

If you are in Band A, you can expect to receive an electricity supply for 20-24 hours each day. Subscribers in Band B have a power supply ranging from 16 to 20 hours, and those in Band C get 12 to 16 hours of electricity daily.