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Reps Orders NERC To Suspend Implementation Of New Tariff

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The Nigeria Electricity Regulatory Commission (NERC) has been instructed by the House of Representatives to halt the introduction of the new incremental pricing for Band A users.

This was decided upon by the lower house in a Tuesday plenary session during the house resolution.

They said that the resolution came about as a result of Kama Nkemkanma’s acceptance of a motion of urgent public significance.

You may remember that NERC increased Band A consumers’ power rates by 230 percent, from ₦68 per kWh to ₦225/kWh. Customers in Band A are those who receive power on a daily average for at least 20 hours.

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A press statement by the Vice Chairman of NERC, Musliu Oseni, said Band A accounts for 15 percent of the 12 million electricity consumers in the nation.

He further explained that due to the failure to meet the necessary electricity supply hours, the customers had been recategorised and the commission had moved some Band A customers to Band B.

Read Also: NERC Deregulates Prepaid Metre Prices From May 1

“We currently have 800 feeders that are categorised as Band A, but upon reviewing those feeders’ performance, the Commission has now reduced it to under 500. This means that 17% now qualify as Band A feeders. These feeders only service 15% of total electricity customers connected to the feeders.

“The commission has issued an order which is titled April supplementary order taking effect from today. The commission now reviewed further the application by the distribution companies and has decided that only 17% of feeders and less than 15% of customers will be affected by any rate increase that the commission will ever approve for the distribution company.

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“The order takes effect from today (April 3) and in that order, the commission has approved a rate review of ₦225 per kilowatt hour for just under 15% of the customer population in NESI. That means that less than 15% of the customers will be affected,” Oseni stated.

However, 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 the eleven electricity distribution companies on Monday, the Minister of Power, Adebayo Adelabu, said any customer on Band A who is not currently enjoying 20-hour electricity, would not pay the new tariff.

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