Rédaction Africa Links 24 with Ibrahim Ramalan
Published on 2024-04-03 13:30:45
The Nigerian Electricity Regulatory Commission (NERC) recently approved an increase in electricity tariffs for Band A customers, raising the rate from N68/KWh to N225/KWh. Band A customers are those who receive electricity supply for 20 hours per day. Musliu Oseni, the Vice Chairman of Market Competitions and Rates at NERC, made this announcement during a news conference in Abuja.
According to Mr. Oseni, Band A customers make up 15% of the 12 million electricity consumers in the country. In light of this increase in tariffs, the commission has also made the decision to downgrade some customers from Band A to Band C. This downgrade is a result of these customers not receiving the required hours of electricity from the Electricity Distribution Companies (DisCos).
NERC’s decision to raise tariffs for Band A customers has sparked mixed reactions among consumers. While some believe that the increase is necessary to improve the quality of electricity supply in the country, others argue that it will further burden consumers who are already struggling to pay their bills.
The Nigerian electricity sector has long been plagued by issues such as inadequate generation capacity, inefficient distribution networks, and high rates of non-payment by consumers. These challenges have contributed to frequent power outages and poor service delivery, leading to frustration among the population.
In response to these challenges, the government has made efforts to reform the electricity sector and attract private investment. The introduction of the Multi-Year Tariff Order (MYTO) by NERC was meant to ensure cost-reflective tariffs and boost investment in the sector. However, the implementation of the MYTO has been met with resistance from consumers who feel that the tariffs are too high and do not adequately reflect the quality of service provided.
Critics of the tariff increase argue that the government should focus on addressing the root causes of the electricity sector’s problems, such as improving generation capacity, upgrading distribution networks, and tackling issues of corruption and inefficiency. They believe that simply raising tariffs without addressing these underlying issues will only serve to further burden consumers and discourage investment in the sector.
On the other hand, supporters of the tariff increase argue that it is necessary to attract investment in the sector and improve the quality of service provided to consumers. They believe that cost-reflective tariffs are essential for ensuring the long-term sustainability of the electricity sector and for attracting the investment needed to modernize and expand the country’s electricity infrastructure.
In conclusion, the increase in electricity tariffs for Band A customers by NERC has sparked a debate about the best way to address the challenges facing the Nigerian electricity sector. While some see the tariff increase as a necessary step to attract investment and improve service delivery, others believe that it will only further burden consumers without addressing the root causes of the sector’s problems. Ultimately, finding a balance between cost-recovery and affordability will be key to ensuring a sustainable and reliable electricity supply for all Nigerians.
Read the original article on DailyNigerian.com
