Minister of Power, Adebayo Adelabu Dr Sam Amadi A few weeks ago, the Nigerian Electricity Regulatory Commission (NERC) announced that it has approved a new tariff rate for some customers grouped under Band A. These customers who were paying N68 for a kilowatt (kwh) hour of electricity, will, as from April 1, 2024, pay N225 per kwh. This is about a 230% increase, in one fell swoop. In electricity industry parlance, any single increase of more than 20%, constitutes a rate shock. This is an extraordinary increase, at a time that cost of energy and cost of necessities have gone up. For example, current food inflation is 35.41%. If you tie this to over 400% increase in petrol price arising from the immediate withdrawal of petrol subsidy, it means that Nigerians are facing a very difficult period.
How Appropriate is the Recent Tariff Review?
How Appropriate is the Recent Tariff Review?
How Appropriate is the Recent Tariff Review?
Minister of Power, Adebayo Adelabu Dr Sam Amadi A few weeks ago, the Nigerian Electricity Regulatory Commission (NERC) announced that it has approved a new tariff rate for some customers grouped under Band A. These customers who were paying N68 for a kilowatt (kwh) hour of electricity, will, as from April 1, 2024, pay N225 per kwh. This is about a 230% increase, in one fell swoop. In electricity industry parlance, any single increase of more than 20%, constitutes a rate shock. This is an extraordinary increase, at a time that cost of energy and cost of necessities have gone up. For example, current food inflation is 35.41%. If you tie this to over 400% increase in petrol price arising from the immediate withdrawal of petrol subsidy, it means that Nigerians are facing a very difficult period.