Band A-E: See where your area belongs and how much you’ll pay as NERC hikes electricity tariff

The Nigerian Electricity Regulatory Commission (NERC) has granted approval for an increase in electricity tariffs specifically targeted at customers classified under Band A. 

Band A customers, as defined by NERC, are those who benefit from uninterrupted electricity supply for 20 to 24 hours daily. 

This tariff adjustment, announced by the Vice Chairman of NERC, Musliu Oseni, entails a significant hike from the current rate of N66 per kilowatt-hour (KW/h) to N225 KW/h.

It’s important to understand the classification system: 

Band A represents the highest level of service with the most hours of electricity supply, followed by Band B (16 to 20 hours daily), Band C (12 to 16 hours daily), Band D (8 to 12 hours daily), and Band E (4 to 8 hours daily). In this context, Band A subscribers, constituting approximately 15% of the nation’s 12 million electricity customers, equate to around 1.8 million subscribers.

Oseni emphasized that the tariff revision will solely impact customers falling under Band A and will not affect those in other bands. This move comes amidst reports from Bloomberg indicating that electricity prices for urban consumers could increase from N68 to N200 per KW/h, as disclosed by sources within the presidency. 

The rationale behind this adjustment is purportedly aimed at attracting new investments into the sector and reducing the substantial $2.3 billion expenditure incurred to cap tariffs.

Furthermore, it is highlighted thaft the impact of the Band A tariff adjustment on subscribers in Lagos State, who currently enjoy 20 to 24 hours of daily electricity consumption, as outlined in documentation provided by NERC. 

This measure reflects a broader strategy to address the challenges within Nigeria’s electricity sector while attempting to ensure a sustainable and reliable energy supply for consumers across different bands.

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