The Nigerian Electricity Regulatory Commission (NERC) says subsidy spending on electricity for 2024 is expected to reduce by at least N1.14 trillion.
Vice Chairman of NERC, Musliu Oseni, disclosed this in Abuja.
He further disclosed plans by the federal government to transition to a targeted subsidy regime to alleviate the effects of macroeconomic changes.
Oseni said the policy was targeted at providing efficient service delivery in the Nigerian Electricity Supply Industry (NESI) while protecting the vulnerable customers.
“The overarching objective of the commission in the consideration of the tariff application is the creation of a financially sustainable electricity market providing adequate and reliable power supply to drive the Nigerian economy.
“The commission, upon due consideration of the tariff applications, has approved revised rates affecting only customers classified under Band Serve category which is about 15 per cent of the customer population,” he said.
According to Oseni, the commission undertook a detailed assessment of the tariff proposals submitted by the 11 Electricity Distribution Companies (DisCos), adhering to its established regulations and business rules, adding that before the review process, there was an examination of the performance improvement plans of the licensees, which also encompassed a public hearing.
He explained that during this hearing, stakeholders and interveners scrutinised the rate filing presented by the public utilities.
Oseni further added that empirical service data had confirmed that this class of customers had truly received the committed level of service.
He added that a mechanism for enforcement and compensation has been set up to address service failures.
“All DisCos have been provided with mandatory targets for investments and migration of more customers to Band.
“The commission has established a robust monitoring framework leveraging on technology to ensure that the public has visibility of the service covenant with their service providers,” Oseni added.
The federal government through on Wednesday announced an increase in electricity tariffs to N225/KWh for consumers classified as Band A.
