New electricity tariff in nigeria 2017

In 2017, the Nigerian Electricity Regulatory Commission (NERC) introduced a new electricity tariff structure in Nigeria, which was aimed at increasing the revenue of the power sector and improving the overall efficiency of the industry. The new tariff structure, known as the "Service-Based Tariff" (SBT), was designed to reflect the actual cost of generating, transmitting, and distributing electricity to consumers.

Here are the key features of the new electricity tariff in Nigeria 2017:

  1. Service-Based Tariff (SBT): The SBT is a tariff structure that is based on the actual cost of providing electricity services to consumers. The tariff is designed to reflect the cost of generating, transmitting, and distributing electricity, as well as the cost of providing customer service and other related services.
  2. Four Tariff Bands: The SBT has four tariff bands, which are designed to reflect the different levels of electricity consumption by consumers. The four tariff bands are:
    • Band A: Low consumption (0-50 units per month)
    • Band B: Medium consumption (51-200 units per month)
    • Band C: High consumption (201-500 units per month)
    • Band D: Very high consumption (above 500 units per month)
  3. Tariff Rates: The tariff rates for each band are as follows:
    • Band A: N30.23 per unit (approximately $0.08 per kWh)
    • Band B: N24.39 per unit (approximately $0.06 per kWh)
    • Band C: N20.45 per unit (approximately $0.05 per kWh)
    • Band D: N16.51 per unit (approximately $0.04 per kWh)
  4. Additional Charges: In addition to the tariff rates, consumers are also required to pay additional charges, including:
    • Service Charge: N2.50 per unit (approximately $0.006 per kWh)
    • VAT: 5% of the total bill
    • Other charges (e.g. metering, connection, etc.)
  5. Metering: The new tariff structure requires that all consumers have a prepaid meter installed, which is designed to prevent estimated billing and ensure accurate metering.

The introduction of the SBT was aimed at addressing the challenges facing the power sector in Nigeria, including the lack of transparency in billing, the high cost of generating and distributing electricity, and the need to increase revenue for the sector. However, the new tariff structure has been criticized by some consumers, who argue that it is too high and will increase their electricity bills.