Governors recommend new electricity tariff model, wants subsidy removed

Nigeria Governors’ Forum wants the Federal Government to put an end to the payment of subsidy on electricity. PHOTO: Twitter

The 36 state governors have urged the Federal Government to put an end to the payment of subsidies on electricity and recommended that tariffs should be both efficient and cost-reflective across Nigeria.

The governors have also called on the Federal Government to enforce a “no-meter, no-service” policy for all new electricity connections across the federation.

They made this call in the Development of the National Integrated Electricity Policy & Strategic Implementation Plan: Policy Recommendations by State Governments to the Federal Ministry of Power document from the Nigeria Governors’ Forum.

The document showed that state governments made emphasis on the critical importance of electricity meters in bridging the significant metering gap, which is vital for the viability of sub-national markets.

According to the document, the states also argued that State Electricity Regulatory Commissions (SERCs) should have the autonomy to determine the most suitable meter technology, type, and form for deployment within their respective electricity markets.

“States believe that the provision of electricity meters to close the huge metering gap is a necessary requirement to make sub-national markets viable,” the document read.

“However, SERCs in conjunction with the Distribution Licensees should be allowed to determine the meter technology, type and form of meters to be deployed within their states’ electricity markets, taking into consideration the cost of meters, extent of the telecommunications coverage in the State, tariff methodologies adopted by the SERC (fixed tariff, time of use, etc) and metering requirement in urban and rural communities and across customer categories arising from their energy consumption.

“States are of the view that the national electricity policy should mandate an immediate “no-meter, no-service” policy for all new connections, to prevent the metering gap from further increasing.”

The Nigerian Electricity Regulatory Commission (NERC) had on April 3, 2024, approved an electricity tariff increase for customers in the Band A category, enjoying at least 20 hours of power supply daily, from N66 per kilowatt to N225/kWh.

Customers under Band A are to enjoy 20–24 hours of electricity supply daily, while those under Band B are the ones who get a daily electricity supply of 16–20 hours.

Band C is supplied with a minimum of 12–16 hours; Band D is supplied with a minimum of 8–12 hours; and Band E is supplied with a minimum of 4–8 hours.