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The Federal Government has announced plans to review electricity tariffs for Band A, B, and C customers due to disparities in the current billing system.
This was made known by the Minister of Power, Adebayo Adelabu on Thursday at the ongoing public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan on Thursday in Abuja.
Describing the current tariff plan as unfair, Adelabu said the government is considering this option over the slow pace of migration to Band A customers, which he attributed to the reluctance of Distribution Companies to make the necessary investments.
Reportedly, the current structure sees customers in Band B, enjoy 18 to 17 hours of electricity supply with N63 per kilowatt-hour charge.
However, those in Band A, enjoy 20 to 19 hours electricity supply but are charged N209 per kilowatt-hour despite the two hours difference from Band B.
Adelabu further stressed the need for a regularisation of the tariffs to create a more balanced and equitable pricing system.
“We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted.
“We are going to look at it and see how we can improve upon our modest achievement of last year, not only to ensure that we grow the sector that we need but also to ensure that we can invest more in revamping all these dilapidated infrastructures.
“The migration to Band A should have been faster, but we found out that the DisCos refuse to invest. They have refused to invest in this sector.
“A lot of investment is required for us to achieve an accelerated migration of lower-band customers into B and A. It is taking a lot of time.” Adelabu said.
He continued that the restructuring the tariff bands will reduce the current wide gap between the Bands.
“The gap between the Band A tariffs and Bands B, C, D, and E is just too wide,” he said. “We believe it’s not fair. It is not just, and we must be able to carry out some level of regularisation.” he added.
Moreso, the Federal Government has announced plans to review electricity tariffs for Band A, B, and C customers over reported disparities in the current billing system.
