Nigerians are in for another tough year after the Nigerian Electricity Regulatory Commission (NERC) approved a new increase in electricity tariff with effect from January 1.
In a directive signed by NERC Chairman, Sanusi Garba and the Commissioner Legal, Licensing and Compliance, Dafe Akpeneye, on December 31, the new tariff regime will mostly affect the Ibadan Electricity Distribution Company (IBEDC), which means consumers in the franchise area including Oyo, Ogun, Osun, Kwara and parts of Niger, Ekiti and Kogi States, will have to pay more for electricity.
The directive, tagged order number NERC/225/2020, stated that the tariff increase will remain in existence until a new order is made.
According to the order, tariff for customers in Band A which is a minimum supply of 20hrs daily will increase by N6.85 to N69.18/kwh, a 10.98 percent rise. Tariff for customers in Band B, a minimum supply of 16hrs daily, will increase by 13.1 percent, N7.65 to N66.04/kwh from the present N58.9/kwh.
For customers in Band C, a minimum supply of 12hrs daily, the increase is 29.13 percent, N14.19 to N62.92/kwh.
The highest tariff increase will be for consumers in Band D, a minimum supply of 8hrs daily, with 121.5 percent, representing N32.79 hike to N55.76/kwh from N26.97/kwh.
NERC explained that the review was necessary following changes in the inflation rate, foreign exchange rate, available generation, gas price, collection losses from ministries, departments and agencies of government, and Capex adjustments.