JUST-IN: Federal Government Plans Electricity Tariff Review for Band B, C Customers
The Federal Government is set to review electricity tariffs for Band B and C customers in an effort to address disparities in the current billing system and promote investment in the power sector, according to Minister of Power, Chief Adebayo Adelabu.
Adelabu made this announcement during the ongoing public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan on Thursday in Abuja. He explained that the government is considering the review due to the slow pace of migration to Band A customers, which he attributed to the reluctance of Distribution Companies (DisCos) to invest adequately in infrastructure.
Currently, customers in Band B, who receive 18 to 17 hours of electricity supply, are charged N63 per kilowatt-hour. In contrast, customers in Band A, who receive only two more hours of supply, are charged N209 per kilowatt-hour.
Adelabu called this pricing structure “unfair” and emphasized the need to regularize the tariffs to create a more balanced and equitable pricing system.
“We will review the tariff,” he said. “I’m not suggesting that we’ll increase the tariff, so I don’t get misquoted. We will review it to see how we can improve upon the progress we made last year and ensure growth in the sector, as well as secure more investments to revamp dilapidated infrastructure.”
The minister pointed out that the transition to Band A should have been faster, but the DisCos’ failure to invest has hindered this progress. “A lot of investment is needed to accelerate the migration of lower-band customers to Band A, and it’s taking longer than expected,” he explained.
The government plans to restructure the tariff bands to reduce the wide gap between the current bands, proposing a new system that will include Bands A, B, and C.
“The disparity between Band A tariffs and those in Bands B, C, D, and E is too large,” Adelabu said. “It’s not fair or just, and we must make adjustments to regularize the system.”
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