New electricity tariff in nigeria 2020

As of 2020, the Nigerian Electricity Regulatory Commission (NERC) has introduced a new electricity tariff structure in Nigeria. The new tariff is designed to reflect the actual cost of generating, transmitting, and distributing electricity in the country.

Here are the key features of the new electricity tariff in Nigeria 2020:

Tariff Bands:

The new tariff structure has five bands, each with a corresponding tariff rate. The bands are based on the customer's consumption level and are as follows:

  1. Band A (0-50 units): N30.23 per unit
  2. Band B (51-100 units): N26.23 per unit
  3. Band C (101-200 units): N23.23 per unit
  4. Band D (201-500 units): N20.23 per unit
  5. Band E (above 500 units): N17.23 per unit

Other Charges:

In addition to the tariff rates, customers will also pay other charges, including:

  1. Service Charge: N2.50 per unit
  2. VAT (Value-Added Tax): 5% of the total bill
  3. Estimated Billing Allowance (EBA): N50 per month (for customers who do not have meters)
  4. Metering Allowance: N50 per month (for customers who have meters)

Key Changes:

The new tariff structure introduces several key changes, including:

  1. Increase in tariff rates: The new tariff rates are higher than the previous rates, with an average increase of 45%.
  2. Introduction of a new tariff band: The new tariff structure introduces a new band (Band E) for customers who consume above 500 units per month.
  3. Increase in service charge: The service charge has increased from N1.50 to N2.50 per unit.
  4. Introduction of VAT: The new tariff structure introduces a 5% VAT on the total bill.

Impact:

The new electricity tariff structure is expected to have several impacts on electricity consumers in Nigeria, including:

  1. Increased electricity costs: The new tariff rates are higher than the previous rates, which may lead to increased electricity costs for consumers.
  2. Increased revenue for DISCOs: The new tariff structure is expected to increase revenue for the Distribution Companies (DISCOs) in Nigeria.
  3. Improved service delivery: The new tariff structure is designed to encourage DISCOs to improve their service delivery, including the installation of meters and the reduction of estimated billing.

It's worth noting that the new tariff structure is subject to review and may be adjusted based on various factors, including changes in the cost of generating and distributing electricity.