New Tariff: Band A Customers Without 20 Hours Supply Won’t Pay – Minister

The Minister of Power, Adebayo Adelabu has called on Band A customers to cease payment of new electricity tariff if they do not enjoy supply up to 20 hours daily.

The Minister also disclosed that the Federal Government would pay the sum of N2.9trn to subsidise electricity this year if the tariff was not reviewed.

The minister stated this while appearing before the Senate Committee on Power on a one-day investigative hearing on the need to halt the proposed increase in electricity tariff by eleven successor electricity distribution companies amid the biting economic situation in Nigeria.

According to him, the government had introduced a new policy to save the drowning sector, assuring Nigerians that the pains were temporary, as the government was concerned and had introduced the new policy to rescue the sector.

The clarification comes as electricity consumer’s struggle with the recent increase in tariffs by the Nigerian Electricity Regulatory Commission (NERC).

However, Chairman of the committee, Senator Eyinnaya Abaribe raised the question of how customers were migrated from the previous customer classes of Residential (R1, R2, R3), Commercial (C1, C2) and Demand (D1, D2), to different bands.

Abaribe requested to know if the band classification was under the provisions of the law.

He also raised more questions on how the parameters differentiate between regions and areas, citing a portion of the Act that highlighted the need for non-discriminatory distribution.

The development comes on the heels of the recent increase in electricity tariffs for consumers in the Band A category by the NERC.

The commission had increased the tariff paid by Band A customers from N68/KWh to N225/kWh.

Band A customers are expected to receive between 20-24 hours of electricity supply daily while the subscribers under Band B enjoy 16 to 20 hours of power supply and those in Band C receive 12 to 16 hours daily.