During the plenary session on Tuesday, the House of Representatives made a significant decision by instructing the Nigeria Electricity Regulatory Commission (NERC) to suspend the implementation of the recently introduced incremental tariff for Band A customers. This directive came after Kama Nkemkanma presented a motion of urgent public importance, drawing attention to the concerns surrounding the tariff hike.
The decision reflects the House’s commitment to addressing the issues raised by consumers regarding the new electricity tariff structure, particularly its impact on Band A customers. By halting the implementation, the House aims to provide room for further deliberations and reviews to ensure fairness and transparency in electricity pricing and alleviate the burden on consumers.
Background and Resolution
NERC raised electricity tariff for Band A customers by 230 percent, from ₦68 to ₦225/kWh. This category includes customers with 20 hours or more of daily electricity supply. As a result of concerns about the tariff hike, the House intervened. NERC’s decision prompted the House to take action.
NERC’s Clarification and Adjustment
NERC’s Vice Chairman, Musliu Oseni, revealed Band A constitutes 15% of the nation’s electricity consumers.
Due to inadequate electricity supply, some customers were reclassified. NERC reduced Band A feeders to under 500, impacting about 17% of feeders and less than 15% of customers.
Consequently, the commission approved a rate review of ₦225 per kilowatt-hour for a limited customer portion. This adjustment aims to address concerns and ensure equitable tariff distribution.
Minister’s Assurance
During a Senate Committee on Power hearing, Minister of Power Adebayo Adelabu provided assurance to customers on Band A who do not receive 20-hour electricity supply.
The statement provides reassurance to consumers, alleviating their concerns about potential tariff hikes. It offers a sense of relief, easing worries amid uncertainty about electricity costs.
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