FG to Review Electricity Tariff For Band B, C Customers as Nigerians Kick

• The Nigerian government is planning a review of the electricity tariff to close the gaps between the Bands
• The Minister of Power, Adebayo Adelabu, revealed that the disparity between Band A, B, and C are too wide
• He said the review became necessary to quickly migrate more customers into Band A amid reluctance by DisCos to invest in the sector

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian government has announced plans to regularise electricity tariffs to address differences in the current billing system and encourage investment in the power industry.

Adebayo Adelabu, the Minister of Power, disclosed this at the ongoing presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan on Thursday, February 27, 2025.

FG moves to close gaps between the Bands

Adelabu revealed that the government is considering the option due to the slow pace of migration to Band A customers due to the reluctance of distribution companies (DisCos) to invest.

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According to him, the current structure allows Band B Customers with 18 to 17 hours of electricity supply to pay N63/Kwh, while Band A customers with 20 hours are charged N209/Kwh.

He described the situation as unfair, saying that the need to regularise the tariffs was to create a more balanced and equitable pricing system.

The minister said the government would look at the tariffs again but did not confirm if there would be an increase.

FG to review tariff for Band B and C customers

According to Punch, Adelabu said the government will review it and see how to improve on the achievement made last year to grow the sector and invest in revamping all the infrastructures.

Adelabu said that the migration to Band A should have been faster, but the government discovered that DisCos are reluctant to invest.

He revealed that a lot of investment is needed for the country to achieve a rapid migration of lower-band customers into Band A.

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Reports say the government is considering restructuring the tariff band to reduce the current gap between them.

The new system proposes to include Bands A, B and C and would address the inequalities.

Adelabu reiterated that the gap between the Band A tariffs and Bands B, C, D, and E are too wide, describing it as unfair.

FG introduces sanctions for metre violations

He said the government is committed to reviewing the existing tariff structure but did not say if it was an increase.

The development comes as the Nigerian Electricity Regulatory Commission (NERC) has introduced new sanctions for electricity consumers including individuals and businesses guilty of bypassing and tampering with metres. 

The commission disclosed this in its newly revised Order on Unauthorised Access, Metre Tampering, and Bypassing on its X page on Tuesday, February 18, 2025. 

NERC said the new sanction became effective on January 22, 2025, and aligns with the Electricity Act 2023 and Consumer Protection Regulation (CPR) 2023 to boost the enforcement against electricity theft and ensure compliance with metre regulations. 

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Metre bypassing and tampering to attract fines

According to the new order, distribution companies (DisCos) are mandated to disconnect illegal connections without prior notice and give clear conditions for reconnection. 

NERC said the move was to reduce unauthorised access to electricity, metre tampering and bypass. 

Also, the new order will establish transparent reconnection guidelines to ensure compliance and halt future violations.

Electricity company begins sharing free metres

Legit.ng previously reported that under the Meter Acquisition Fund (MAF) programme, Eko Electricity Distribution Company (EKEDC) has started giving away free prepaid metres to Band A consumers in its franchise region as part of its ongoing efforts to close the metering gap.

The Federal Government of Nigeria launched the Meter Acquisition Fund (MAF) programme as part of the Presidential Metering Initiative (PMI) to give Band A subscribers free metres. It seeks to expedite postpaid clients' switch to prepaid and fix malfunctioning meters.

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The Nigerian Electricity Regulatory Commission (NERC), the industry regulator, keeps an eye on the procedure.

Source: Legit.ng