NERC Removes Electricity Subsidy By 15% For Wealthy Customers

Nigeria’s Electricity Regulator Commission (NERC) on Wednesday approved an increase of 15 percent tariffs for wealthy customers who enjoy 20 hours per day of electricity supply as the government is determined to remove subsidy on power.

Presidential spokesperson, Bayo Onanuga, had on Tuesday told Reuters that the government planned to axe an electricity subsidy for 15% of consumers to reduce its $2.6bn (R48,5bn) cost.

The vice chairman of the Nigerian Electricity Regulatory Commission (NERC), Musiliu Oseni, said the increase would take effect immediately.

“The commission has approved a rate review of 225 naira per kilowatt hour from a maximum of 68 naira per kilowatt hour just for 15% of the customer population of 12 million in the Nigerian electricity supply industry,” Oseni said.

According to Oseni, The increase represents   a 300 per cent electricity tariff for Band A consumers in the country.

Meanwhile, the Transmission Company of Nigeria (TCN) has raised the alarm over a planned attack on its facilities in Zuba, Gwagwalada area of the Federal Capital Territory.

The TCN spokesperson, Ndidi Mbah, disclosed this in a statement following national grid collapse.

Mbah said there were alerts of planned attacks on the power installations in Zuba, calling for heightened vigilance.

While reiterating the firm’s commitment to managing the national grid and ensuring its stability amid ongoing challenges such as the persistent low gas supply affecting power generation in the nation’s grid, he said TCN grid controllers work tirelessly day and night to balance the grid and prevent any kind of disturbance.

According to Mbah, the recent grid disturbance on March 28 was promptly managed by TCN operators, with power restoration achieved in some areas within 21 minutes.

“We acknowledge the collaborative efforts of the Federal Government, particularly the Minister of Power, who has been working hard to address the root causes of low gas supply. The Minister has held meetings with generating companies and gas companies to secure a higher volume of gas supply and consistency for enhanced power generation,” he noted.

However, he stated that as efforts to stabilise the gas supply progressed, consistent gas availability was important to sustaining optimal power generation, facilitating easier grid management, and reducing system disturbances.

“It is a fact that low power generation substantially increases grid fragility.

“Vandalism is a persistent challenge, as clearly seen in the first quarter of 2024 alone, in which five significant vandalism incidents disrupted transmission operations, necessitating emergency repairs and, in some cases, complete tower reconstruction and/or transmission line replacement due to acts of vandalism,” she added.

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