• Electricity
• FG
• Tariff Band

FEDERAL GOVERNMENT TO REASSESS ELECTRICITY TARIFFS FOR BAND B, C CONSUMERS

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  CapitalTimesNews / 1 week
• 0
• 2 min read

The Federal Government has announced plans to standardize electricity tariffs in a bid to address disparities in the current billing system and encourage further investment in the power sector. Minister of Power Adebayo Adelabu revealed that the government is revisiting the tariff structure, citing the slow shift of customers to Band A due to the reluctance of Distribution Companies to invest in necessary upgrades. Under the current arrangement, Band B consumers, who receive 17-18 hours of electricity supply, are charged N63 per kilowatt-hour, while Band A customers, who receive 20-24 hours of supply, are charged N209 per kilowatt-hour. Adelabu criticized this discrepancy as unjust and stressed the need for a fairer pricing framework. “We will re-examine the tariff structure. I am not suggesting that an increase is on the cards immediately,” Adelabu said. “Our aim is to build on last year’s modest progress—not only to foster the growth of the sector but also to invest more in revitalizing our aging infrastructure.” The government is contemplating a restructuring of the tariff bands to reduce the wide gap between them. A proposed new system would categorize consumers into Bands A, B, and C, aimed at addressing the existing inequities. “The gap between the Band A tariffs and those for Bands B, C, D, and E is simply too wide,” Adelabu observed. “It is neither fair nor just, and we must introduce some level of regularization.” Adelabu reassured that the reassessment of the tariff structure does not imply an imminent increase in electricity rates.