Adebayo Adelabu, the Minister of Power, has issued a stark warning, stating that failure to increase electricity tariffs could result in nationwide power outages. Adelabu’s remarks come in the wake of the Nigeria Electricity Regulatory Commission’s (NERC) recent approval of tariff adjustments, particularly for customers falling under the Band A classification.
According to NERC’s announcement on April 3, customers categorized under Band A, who receive 20 hours of electricity supply daily, will now face a tariff increase from N66 to N225 per kilowatt-hour (kW), effective from April 3. Speaking before the Senate Committee on Power, Adelabu justified the tariff hike, despite acknowledging the burden it places on citizens, asserting that it is necessary for the advancement of the sector.
Adelabu emphasized the potential consequences of not implementing the tariff adjustment, warning that within three months, the entire country could plunge into darkness. He argued that the tariff increase is essential for propelling the nation’s electricity sector forward.
Addressing concerns about the impact on consumers, Adelabu clarified that the tariff adjustment is conditional. He explained that customers should only be billed at the new rate if DisCos provide a minimum of 20 hours of power supply daily for seven consecutive days. Failure to meet this requirement would result in customers being charged at the old tariff rate.
To ensure compliance with the new tariff order, Adelabu highlighted the implementation of penalties for DisCos that fail to meet the stipulated service standards. He cited an instance where a DisCo was penalized with a fine of N200 million for inadequate power supply despite charging customers at the increased tariff rate.
Adelabu emphasized that such penalties serve as a deterrent to DisCos and underscore the government’s commitment to enforcing service standards in the electricity sector.
