Despite Increase In Electricity Tariff, It Is Cheaper Being On Band A Than Using Generator- Adelabu
The Minister of Power, Adebayo Adelabu has said that despite the increase in electricity tariff, it is cost-effective to be on the Band A plan, than to power homes and businesses through generators.
Recall that the National Electricity Regulator Commission (NERC) in April 2024, announced the categorization of electricity customers according to the hours of power supply they enjoy daily.
According to NERC, Customers on Band A enjoy 20 hours and above electricity supply at N206.80/kWh.
Justifying the Band A categorization, Adelabu at the public hearing on electricity tariffs organised by the House of Representatives Joint Committee on Power, Commerce, National Planning, and Delegated Legislation in Abuja said despite the hike, electricity tariff in the country remains cheap and affordable.
He said, “We are still about the cheapest, even in Sub-Saharan Africa. Despite the tariff, our neighbouring countries pay higher, so, the price isn’t comparable.
“Band A is cheaper compared to other sources of generating power. It is almost 50 per cent cheaper to connect to Band A of the national grid than to run on fuel and diesel.
“So, when we complain about the higher tariff, it is cheaper for any business to pay for a grid connection than to individually generate power.”
The power minister also expressed relief on the financial electricity constraint faced by the federal government before the Band A allocation.
Adelabu said the initial subsidy of approximately N3trn has been reduced by 66.67 per cent to N1trn.
He said, “We are out to make things better for Nigeria and to create industrial development through our local manufacturing, and energy is needed to do this.”
He reiterated that the increase in tariffs is to make life more affordable, not more difficult
