The Nigerian Electricity Regulatory Commission (NERC) has indicated that it is considering another adjustment in electricity tariffs across all customer bands, citing rising operational costs in the sector. In a post on its X (formerly Twitter) account on Monday, May 11, NERC assured consumers that any planned tariff adjustment is aimed at improving service delivery and protecting customer rights.
NERC's Message to Nigerians
NERC stated: "We are bringing the electricity tariff closer to you to improve your quality of life, and we assure you of continued protection of your rights every day. The Nigerian Electricity Regulatory Commission, NERC, is with you to ensure access to quality, affordable electricity, and to pay for it in a painless manner. In the spirit of reducing the one-size-fits-all payment system that lacks steady measurement, even amidst occasional power outages. You deserve satisfaction and accurate information on the increase."
The commission added: "There is no issue of hidden pricing or cutting off your power arbitrarily. The Nigerian Electricity Regulatory Commission, N.E.R.C, is here to address all your complaints, protect your rights, and ensure you know you have power."
Concerns Over Rising Costs
The development has sparked concern among electricity consumers who are already grappling with a high cost of living, inflation, and persistent erratic power supply. In April 2024, NERC raised tariffs for Band A customers from about N68/kWh to over N225/kWh, an increase of more than 240%. About 15% of electricity consumers fall under Band A and are expected to receive at least 20 hours of daily electricity supply. However, after a slight reduction to N206.80/kWh in May, some distribution companies increased it again in July to about N209.50/kWh, while customers reported no commensurate improvement in power supply.
Possible Expansion of Tariff Review
Nigeria uses a band-based system where electricity consumers are charged based on the average daily hours of electricity supply. While Bands B, C, D, and E customers were exempted from the previous review and continue to pay under existing tariffs, fresh industry discussions suggest that the regulator may widen the scope of the tariff review beyond Band A customers. The review is expected to follow the Multi-Year Tariff Order framework, which adjusts electricity prices based on inflation, exchange rates, and gas costs.
Impact on Consumers
If implemented, the tariff increase would add to the financial burden on Nigerians, many of whom already struggle with high living expenses. The move comes amid ongoing challenges in the power sector, including inadequate generation, transmission, and distribution infrastructure. NERC has not provided a timeline for the proposed adjustment but assured consumers that their rights would be protected.
