The body noted that its new decision comes amid the FG’s decision to consent to the agreement to pay ₦1.6 trillion as subsidies for consumers in 2024
Electricity consumers in Nigeria will now heave a sigh of relief as the electricity regulatory body has shut down the proposed tariff hike in 2024.
This development comes despite the release of the new electricity tariff regime for the 11 electricity distribution companies by the Nigerian Electricity Regulatory Commission, NERC.
The body noted that its new decision comes amid the FG’s decision to consent to the agreement to pay ₦1.6 trillion as subsidies for consumers in 2024 adding that with the new policy, the electricity tariff will remain as it has been since December 2022.
Recall in November 2023, the President, Bola Tinubu stopped the implementation of a hike in electricity tariff and insisted that subsidy be paid on power consumed nationwide.
The President, who spoke through the Minister of Power, Adebayo Adelabu noted that the FG had planned to increase the power tariff months back, but the process was put on hold until the country was able to achieve a stable, regular and increased power condition.
An analysis of subsidy payments for the different DisCos revealed that in 2024, the FG will part with ₦233.26 billion as subsidies for consumers under the Abuja Electricity Distribution Company, AEDC.
With the halt in tariff increment, consumers served by AEDC will now pay just ₦63.24/kWh while the government will pay ₦58.12/kWh from the approved ₦120.88/kWh by the commission
The FG will also pay the sum of ₦238.20 billion as subsidy in 2024 to Ikeja Electric.
The commission had approved ₦112.10/kWh as cost-reflective tariff for customers of IKEDC but with the FG’s intervention, consumers will be charged only ₦56.60/kWh while the government will pay ₦55.50/kWh as subsidy.
For consumers covered by Enugu DisCo, the FG will pay ₦129.92 billion as subsidies in 2024.
With the FG’s intervention, consumers will now pay ₦59/kWh for electricity while the government will pay ₦69.40/kWh from the approved ₦128/kWh by the commission.
For Benin DisCo, NERC revealed the FG would be paying ₦140.85 billion as subsidy in 2024. With subsidy payment, consumers covered by the DisCo will now pay ₦60.10/kWh while the government will pay ₦65.90/kWh as subsidy after getting approval for ₦126/kWh as cost-reflective tariff from the regulator.
