The Nigerian Electricity Regulatory Commission (NERC) has released a new tariff, maintaining the Band A end-user bill at N209/KWh, the same rate as in July when the commission last implemented a change.

Although subsidies in the sector are rising by approximately N190 billion yearly, projected to reach N2.3 trillion by the end of 2024, NERC’s latest supplementary order for the December Multi-Year Tariff Order did not account for inflation and other economic indices.

The commission has also directed most Distribution Companies (DisCos) to downgrade certain feeders due to their inability to meet the promised hours of electricity supply for Band A.

The order, addressed to all 11 primary DisCos, indicates that tariffs for categories B to E remain frozen. For instance, Abuja DisCo alone has accumulated about N83 billion in subsidies over the past three months.

NERC stated: “The approved tariffs shall remain in force, subject to monthly adjustments of pass-through indices, including inflation rates, NGN/US$ exchange rates, and gas-to-power prices.”

Furthermore, the commission ordered DisCos to provide appropriate compensation to affected Band A customers in areas where utility companies failed to deliver up to 20 hours of average supply but provided more than 18 hours.

Specifically, NERC instructed Eko DisCo to downgrade about nine feeders. It also directed the company to “make appropriate compensation to the affected customers in Band A feeders listed in Appendix Two for failure to deliver up to 20 hours of average supply but more than 18 hours, in line with the provisions of the Order on Migration. The feeders shall remain classified as Band A.”