In a bid to rectify disparities in the current electricity billing system and stimulate investment in the power sector, the Federal Government has announced plans to overhaul electricity tariffs, particularly targeting Band B and C customers.
The Minister of Power, Adebayo Adelabu, disclosed this during the ongoing public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan in Abuja on Thursday.
Adelabu emphasized the need for a more equitable pricing system, citing the significant gap between tariff rates for different customer bands.
Currently, customers in Band B, benefiting from 17 to 18 hours of electricity supply, pay N63 per kilowatt-hour (kWh). In contrast, Band A customers, receiving only two additional hours of supply, are charged significantly higher at N209 per kWh.
Adelabu criticized this discrepancy as unjust and called for a restructuring of tariffs to foster a fairer system.
“We will look at the tariff again,” stated Adelabu, underscoring that the government’s objective is not an immediate tariff hike but rather a revision aimed at building on previous sectoral improvements.
He attributed the slow migration to Band A to the reluctance of Distribution Companies (DisCos) to invest adequately in infrastructure upgrades.
“The DisCos have been hesitant to invest, which has slowed down the transition of lower-band customers to Band A,” remarked Adelabu.
He emphasized the necessity for increased investment to accelerate this migration process, crucial for enhancing service delivery across all customer segments.
The proposed tariff restructuring aims to narrow the wide gap between different bands, ensuring a more balanced pricing framework that supports sector growth and infrastructure revitalization efforts.
Adelabu reassured the public that the tariff review is intended to promote fairness and efficiency within the sector, affirming that it does not signal an immediate tariff hike.
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