New electricity tariff in nigeria 2019

In 2019, 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. Here are the key features of the new tariff structure:

Tariff Structure:

The new tariff structure is based on a multi-step approach, with different tariffs for different consumer categories. The tariffs are divided into three main categories:

  1. Service-Based Tariff (SBT): This tariff is applicable to customers who consume up to 12 units of electricity per month. The tariff is N30.23 per unit.
  2. Cost-Reflective Tariff (CRT): This tariff is applicable to customers who consume between 12 and 50 units of electricity per month. The tariff is N26.20 per unit.
  3. Cost-Plus Tariff (CPT): This tariff is applicable to customers who consume more than 50 units of electricity per month. The tariff is N23.10 per unit.

Other Tariff Components:

In addition to the above tariffs, there are other components that make up the total electricity bill. These include:

  1. Fixed Charge: This is a monthly charge that is applicable to all customers, regardless of their consumption level. The fixed charge is N150 per month.
  2. VAT: This is a value-added tax that is applicable to all electricity bills. The VAT rate is 5%.
  3. Other Charges: These include charges for metering, meter reading, and other services. The total of these charges is N100 per month.

Impact of the New Tariff Structure:

The new tariff structure was introduced to address the financial challenges facing the power sector in Nigeria. The main objectives of the new tariff structure are:

  1. To increase revenue: The new tariff structure is designed to increase the revenue of the power sector, which will enable the sector to invest in new infrastructure and improve the overall efficiency of the industry.
  2. To reduce losses: The new tariff structure is designed to reduce the losses that occur in the power sector, including technical, commercial, and financial losses.
  3. To improve service delivery: The new tariff structure is designed to improve the service delivery of the power sector, including the provision of reliable and efficient electricity supply.

Public Reaction:

The introduction of the new tariff structure was met with mixed reactions from the public. Some people welcomed the new tariff structure, arguing that it was necessary to address the financial challenges facing the power sector. Others criticized the new tariff structure, arguing that it was too high and would increase the burden on consumers.

Overall, the new tariff structure is designed to address the financial challenges facing the power sector in Nigeria and to improve the overall efficiency of the industry. However, the impact of the new tariff structure on consumers remains to be seen.