Electricity consumers in Nigeria will start paying more, starting from September 2021, courtesy of the newly approved Service-Based Tariff (SBT) allegedly approved by the Nigerian Electricity Regulatory Commission, NERC, in a memo to Electricity Distribution Companies, DisCos.
This new development is aimed at increasing the cost of electricity by over 50 per cent, in order to enable the government to end subsidies in the electricity sector, according to sources.
Reports indicate that 11 Discos have started to inform their customers, who have been calling for improved services and mass deployment of prepaid meters nationwide.
Vanguard reported that the General Manager, Loss Reduction, Olumide Anthony-Jerome, Eko Electricity Distribution Company, disclosed that the tariff would be increased by between N42.44 and 58.94 per kilowatts, depending on their classification.
The letter read in part, “This is to officially notify you that there will be an increase in electricity tariff with effect from 1st September 2021. This increase is a result of a nationwide mandate to implement the Service-Based Tariff approved by our regulator NERC.
“Kindly note that the increase will be reflected on the energy bill for October 2021 which will represent energy consumption for September 2020.”
It added: “In addition, for our metered customers with internal vending arraignments, we urge you to adjust the rates accordingly to reflect the new tariff increase as released by NERC.”