FG plans fresh electricity tariff review for Band B, C customers

The Federal Government has announced its intention to review electricity tariffs to address pricing imbalances and foster greater investment in the energy sector.

Minister of Power, Adebayo Adelabu, shared this development on Thursday in Abuja during the public presentation of the National Integrated Electricity Policy and Nigeria Integrated Resource Plan.

Adelabu explained that the decision stems from the sluggish transition of customers to Band A, a situation he attributed to the reluctance of Distribution Companies (DisCos) to invest in infrastructure improvements.

Currently, Band B consumers, who receive 17 to 18 hours of electricity daily, are charged N63 per kilowatt-hour. Meanwhile, Band A customers, who get just two additional hours of supply, pay a significantly higher rate of N209 per kilowatt-hour.

Describing this discrepancy as unfair, Adelabu emphasized the need to balance tariffs more equitably.

“We will look at the tariff again. I am not saying that we’re going to increase the tariff before I am misquoted,” he clarified. “We are going to look at it and see how we can improve upon our modest achievement of last year, not only to ensure that we grow the sector that we need but also to ensure that we can invest more in revamping all these dilapidated infrastructures.”

The minister emphasized that the pace of migration to Band A has been slower than expected due to the DisCos’ failure to make necessary investments.

“The migration to Band A should have been faster, but we found out that the DisCos refuse to invest. They have refused to invest in this sector,” Adelabu said.

He stressed the importance of significant investment to speed up the transition of lower-band consumers to Band A, adding that the government is exploring adjustments to the tariff structure to reduce the stark price gap between bands.

“The gap between the Band A tariffs and Bands B, C, D, and E is just too wide,” he stated. “We believe it’s not fair. It is not just, and we must be able to carry out some level of regularisation.”

Adelabu reassured the public that while a review is necessary, it does not automatically mean tariffs will increase