The Federal Government has disclosed that the latest electricity tariff hike is targeted at mitigating the impact of current economic hardship and protecting 85 percent of vulnerable electricity consumers.
Further, it said the objective is to also reduce the annual electricity subsidy by NGN1.14 trillion and boost investments in targeted areas with efficient electricity supplies.
Recall that in its latest tariff review, NERC announced that less than 15 percent of electricity consumers in Band A connected to 17 percent of total electricity feeders of the eleven DisCos, would henceforth be paying N225 per KW/hr as they receive at least 20 hours of power supply daily.
According to the Nigerian Electricity Regulatory Commission (NERC), “The Federal Government of Nigeria has indicated a transition in policy direction towards introducing a more targeted subsidy regime aimed at mitigating the impact of changes in macroeconomic parameters while largely protecting vulnerable customers and fostering investments targeted at providing efficient service delivery in the Nigerian Electricity Supply Industry (NESI).
NERC also explained at a news briefing with Newsmen in Abuja that the overriding objective of the tariff hike in Band A, is creation of a financially sustainable electricity market providing adequate and reliable power supply to drive the Nigerian economy.
NERC stressed that “Upon due consideration of the tariff applications, has approved revised rates affecting ONLY customers classified under Band A service category (about 15% of the customer population); empirical service data has confirmed that this class of customers have truly received the committed level of service.
“Under the revised tariff Order issued by the Commission, DisCos are under an obligation to provide customers classified under Band A service category a minimum average supply of 20hrs/day measured over a period of one week.
“All other customers under Band B to E service category and representing 85% of customers population would not be affected by the current review of end-user tariffs. All DisCos have been provided with mandatory targets for investments and migration of more customers to Band A service category
“With the newly approved tariffs, subsidies for the 2024 fiscal year are expected to reduce by about NGN1.14 trillion in furtherance of the Federal Government’s realignment of the subsidy regime.”
Meanwhile, the Commission has established a robust monitoring framework leveraging on technology to ensure that the public have visibility of the service covenant with their service providers.
It added that an enforcement and compensation mechanism has also been established, in the event of service failure and assured all Nigerians that the Commission working in collaboration with the policymakers remains committed towards providing adequate and reliable electricity to all citizens.
News5 days ago