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April 29, 2024 Minister of Power and NERC Summoned by Senate Regarding Increase in Electricity Tariffs

Ministers of Power, Adebayo Adelabu, and representatives from the Nigerian Electricity Regulatory Commission (NERC) attended a one-day investigative hearing before the Senate Committee on Power on Monday. The focus of the hearing was to address the proposed electricity tariff hike by eleven successor electricity distribution companies, particularly in light of Nigeria's challenging economic conditions.

During the session, Committee Chairman Senator Eyinnnaya Abaribe raised concerns about the migration of customers from previous classification classes such as Residential (R1, R2, R3), Commercial (C1, C2), and Demand (D1, D2) to different bands. Abaribe questioned the legality of this classification under existing laws and sought clarification on parameters distinguishing between regions and areas, emphasizing the need for non-discriminatory distribution as outlined in the relevant legislation.

The hearing follows NERC's recent decision to increase electricity tariffs for consumers in the Band A category, raising rates from N68/KWh to N225/KWh. Band A customers typically receive 20-24 hours of electricity supply daily, while Band B and Band C subscribers experience 16-20 hours and 12-16 hours of power supply, respectively.

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