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Thu, Apr

Amidst Epileptic Power Supply: FG Set To Jack Up Electricity Tariff From Next Year

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The Federal Government through the Nigerian Electricity Regulatory Commission (NERC) has increased the tariff payable by power consumers across the country starting from next year.

 

Source from the NERC on Wednesday in Abuja revealed that commencing from next year, power consumers across the country will have to pay additional sum of between N8 and N14 for every kilowatt-hour of energy they consume from their respective distribution companies.

 

Accordingly, NERC has set out the actual cost tariff corresponding to each of the 11 power distribution companies operating in Nigeria.

 

The information was contained in the cost-reflective tariff of each of the Discos in separate documents for each distributor in a regulatory instrument contained in ‘The 2016-2018 Minor Review of Multi-Year Tariff Order 2015 and Minimum Remittance Order for the Year 2019

 

More so, the tariff increase for each Disco is unique, going by figures contained in the documents obtained from the commission.

 

Source revealed that for Abuja Disco’s minor review assumptions 2015 – 2021, the commission stated that the Disco’s end-user cost-reflective tariff from 2017, 2018, 2019, 2020 and 2021 per KWh were N42.81, N46.44, N52.86, N46.02 and N44.29 respectively.

 

However, NERC, record revealed that the end-user allowed tariff from 2017 to 2019 per kWh was N32.66 in each of the years, while those of 2020 and 2021 were put at N42.46 and N44.21.

 

Looking at the difference between what AEDC’s customers pay currently and what they will pay from next year, going by NERC’s figures, it translates to an increase of N9.8/kWh.

 

For Benin Disco, it said the end-user cost-reflective tariff from 2017, 2018, 2019, 2020 and 2021 per kWh were N51.37, N54.36, N59.07, N47.61 and N43.79, respectively.

 

It was also discovered that the end-user allowed tariff from 2017 to 2019 per kWh was N32.50 in each of the years, while those of 2020 and 2021 were put at N42.25 and N43.79.

 

Comparing them, the difference between what BEDC’s customers pay currently and what they will pay from next year is an increase of N9.75/kWh.

 

In Jos Disco, the tariff increase for 2020 is N10.1/kWh, as consumers under this Disco will have to pay N43.9/kWh, as against N33.8/kWh which they currently pay.

 

In Kaduna, power users will witness an increase of N9/kWh. The end-user allowed tariffs for 2019, 2020 and 2019 per kWh for Kaduna Disco, as captured by NERC, are N30.3, N39.3, and N41.7, respectively.

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