Electricity Tariff Hike: Poor, Vulnerable Nigerians Won’t Experience Increase – NERC

Nigerian Electricity Regulatory Commission (NERC) has confirmed that poor and vulnerable Nigerians will not be affected by the planned increase in electricity tariff.

The poor and vulnerable Nigerians are categorised as customers in residential areas who consume less than 50W of electricity and gets less than 12 hours of supply.

James Momoh, NERC Chairman, who confirmed the exemption of electricity tariff increase for poor Nigerians, explaining that only customers under the Service Based Tariff Structure will be affected but with proper engagement before implementation.

“NERC wishes to clarify that tariff reviews going forward will only follow service-based principles. Under these service-based principles DisCos will only be able to review tariff rates for customers when they consult with customers, commit to increasing the number of hours of supply per day and quality of service,” Momoh said.

“In all cases poor and vulnerable Nigerians will not experience any increase. In line with these expectations, DisCos are directed to engage with their customers on a Service Based Tariff structure. Under the Service Based Tariff Structure, DisCos can only review tariffs for customers under the following conditions.

“Customers are consulted and communicated a guaranteed level of electricity service by the DISCOs based on hours of supply; customers are metered; no estimated billing through the strict enforcement of the capping regulation.

“This means that unmetered customers will not experience any cost increase beyond what is chargeable to metered customers in the same area. Even under the above conditions, there will be no change in tariff for the most vulnerable as tariffs for those consuming 50KW or less remain frozen.

“Customers receiving less than 12 hours of supply will also not experience any change in tariffs. In addition, the President has directed that there should be a nationwide mass-metering program in an effort by the Federal Government to put a stop to estimated and arbitrary billing for electricity.”

President Muhammadu Buhari had Tuesday approved the implementation of the proposed cost-reflective energy tariff for the Nigerian Electricity Supply Industry (NESI).