Electricity tariff: DisCos dares NERC, returns 620 areas to Band A

Electricity tariff: DisCos dares NERC, returns 620 areas to Band A

Thousands of electricity consumers in about 620 feeder coverage areas across the country downgraded to Band B are set to return to Band A, moving their tariff upwards from N68 per kilowatt hour to N225/kWh.

The Nigerian Electricity Regulation Commission (NERC) on Tuesday announced a new tariff for the Band A customers increasing the rate by about 230 per cent.

NERC on Thursday published a list of over 90 areas in Lagos State covered by the Ikeja Electric and Eko DisCo that are classified under Band A and affected by the new tariff increase.

Those in the other bands from B to E are not affected by the tariff hike.

The return of more consumers to Band A was a decision taken by the electricity distribution companies (DisCos), according to a report by Vanguard.

The newspaper stated that the DisCos had recorded 1,100 feeder coverage areas for Band A but NERC said the actual coverage area for the new tariff is only 480.

A source in one of the DisCos in Lagos told Vanguard that they were now working on increasing the number of Band A consumers to return those earlier removed by NERC back to Band A.

Band A customers are those who receive an average daily supply of electricity supply 20 hours or more.

With the new order issued by NERC, Band A would no longer enjoy the Federal Government subsidy on electricity.

The new tariff regime is expected to reduce subsidy costs by N137.1 billion per month following the decision to raise tariff for about two million consumers by 230 per cent.

Vanguard also reported that following the freeze in tariff, annual subsidies payable by the government rose to N241.66 billion monthly.

NERC disclosed that the government would now spend only N104.6 billion monthly as subsidy, which was hitherto  N241.66 billion.