Barring any last-minute change, electricity consumers in Nigeria are to pay between N2.89 and N7.45 per kilowatt hour (kwh) increase in the new cost reflective tariff slated for announcement before October, New Telegraph reports.
Investigations showed that the Nigerian Electricity Regulatory Commission (NERC), an agency in charge of the tariff, which completed receipts of complaints on the tariff review after expiration of a 30-day window, is “awaiting the final signal” from the Presidency before it would announce the new tariff.
The Federal Government had already yielded to pressure from power investors to go ahead with the major tariff review, which reflects the “current economic realities.” Referring to the hike as a marginal increase, a draft copy of the tariff showed that the monthly/quarterly review is expected to be reflected differently by the 11 electricity distribution companies.
There are five classes considered for the new tariff; the first is Class A, Residential. The second is Class B, which is Commercial. The third is Class C for Industrial Customers. After this is Class D, which includes Special Hospitals, government institutes, schools, religious bodies etc. The next one is Class E, which is the tariff module used for Street Lights.
All the R1 customers who are rural dwellers are, however, exempted, while the others from top class residential to industrial would have their tariff increased. The division is based on the average consumption of electricity by each class. It is different for each class and DISCOs. It also depends on the quantity of consumed energy.