- The Federal Government plans to review the current electricity tariff to address gaps between consumers in Bands A and other Bands
- It said measures would be taken to regularise and restructure tariffs to address Band disparities
- The government said efforts are being made to encourage investment in the power sector
The Federal Government has announced plans to regularise electricity tariffs to address disparities in the current billing system and bridge the gaps between Band A and other Bands.
It added that efforts are being made to encourage investment in the power sector, especially to tackle infrastructural challenges.
The Minister of Power, Adebayo Adelabu, disclosed this at the ongoing public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja, on Thursday, February 27.
Adelabu said the government is considering the electricity tariff review due to the slow pace of migration to Band A by customers from lower bands.
He attributed this delay to the reluctance of Distribution Companies (DisCos) to make the necessary investments.
“We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted.
“We are going to look at it and see how we can improve upon our modest achievement of last year, not only to ensure that we grow the sector that we need but also to ensure that we can invest more in revamping all these dilapidated infrastructures.
“The migration to Band A should have been faster, but we found out that the DisCos refuse to invest. They have refused to invest in this sector.
“A lot of investment is required for us to achieve an accelerated migration of lower-band customers into Band A. It is taking a lot of time,” he said.
Measures to address Band disparities
The minister said the disparity under the current structure between customers in Band B, who enjoy 18 to 17 hours of electricity supply and pay N63 per kilowatt-hour, and those in Band A, with only two hours more of supply, who are charged N209 per kilowatt-hour, is too wide.
He stresses the need for a regularisation and restructuring of the tariffs to create a more balanced and equitable pricing system that will reduce the existing gap.
Adelabu said the proposed new system will encompass customers in Bands A, B, and C, to address inequalities.
“The gap between the Band A tariffs and Bands B, C, D, and E is just too wide.
“We believe it’s not fair. It is not just, and we must be able to carry out some level of regularisation,” he said.
Electricity tariff increase imminent, but not by 65% – FG
Meanwhile, TheRadar earlier reported that the Federal Government said an increase in electricity tariff was imminent but not by 65 per cent as was recently speculated in the media.
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this in a statement on Monday, February 3.
