Nerc new electricity tariff
You're referring to the new electricity tariff announced by the Nigerian Electricity Regulatory Commission (NERC).
As of October 2022, NERC introduced a new electricity tariff structure, which aims to increase the revenue of electricity distribution companies (DISCOs) and improve the overall efficiency of the power sector. Here are some key highlights of the new tariff:
Tariff Structure:
The new tariff structure is based on a multi-step approach, with different bands for different consumer categories. The bands are:
- Low-Income Band (0-50kWh): N30.23/kWh
- Medium-Income Band (50-100kWh): N26.45/kWh
- High-Income Band (100-200kWh): N23.13/kWh
- Very High-Income Band (above 200kWh): N19.35/kWh
Key Changes:
- Increase in Tariff: The new tariff is higher than the previous one, with an average increase of 45%.
- New Banding System: The new tariff structure introduces a banding system, which means that consumers will be charged based on their consumption level.
- Removal of Fuel Charge: The fuel charge, which was previously included in the tariff, has been removed.
- Introduction of Service-Based Tariff: The new tariff is based on a service-based approach, which means that DISCOs will be incentivized to provide better services to consumers.
Impact:
The new tariff is expected to have both positive and negative impacts on consumers. On the positive side, it is expected to:
- Increase revenue for DISCOs, which can lead to improved infrastructure and services.
- Encourage energy efficiency and conservation, as consumers will be incentivized to reduce their consumption.
On the negative side, the tariff increase may lead to:
- Increased cost of living for consumers, particularly low-income households.
- Reduced demand for electricity, which can lead to a decrease in revenue for DISCOs.
It's worth noting that the new tariff is subject to review and adjustment, and NERC will continue to monitor the impact of the tariff on the power sector and consumers.