The Nigerian Electricity Regulatory Commission said that the Federal Government intends to allocate N199.64 billion for electricity subsidies in December 2024.
This amount is N5.38bn more than the N194.26bn recorded in November.
According to NERC’s Multi-Year Tariff Order report for December 2024, which is available on its website, Band A users continue to pay N209/kWh, while tariffs for Bands B to E remain stable at December 2022 prices.
The report indicated that consumers of Abuja Electricity Distribution Company will obtain thebiggest portion of the subsidy, amounting to N29.10bn.
Consumers of Yola Electricity Distribution Company are anticipated to gain from subsidies amounting to N8.63bn.
“In accordance with the FGN’s electricity subsidy policy, the sanctioned tariffs for Bands B-E consumer categories will stay fixed at the rates in effect since December 2022, pending additional government policy guidance.”
According to the AEDC report, “this policy is expected to provide a consumer subsidy benefit of around N29.10bn for those under the AEDC franchise in 2024.”
Additional DisCos along with their respective subsidy allocations are as follows, Port Harcourt DisCo (N14.84bn), Kano DisCo (N13.58bn), Kaduna Electricity (N14.49bn), Jos DisCo (N12.77bn), Ikeja Electric (N26.68bn), Ibadan DisCo (N24.55bn), Eko DisCo (N22.42bn), Enugu DisCo (N16bn), and Benin DisCo (N16.46bn).
The report linked the rise in subsidies to a greater exchange rate of N1,687.45 per dollar, an inflation rate of 33.9%, and adjustments in power generation capacity.
Previously, THE POINT reported that NERC started implementing daily fines on DisCos for unmigrated meters, starting January 1, 2025.
At the Q4 NESI Stakeholders Meeting, the Commission directed DisCos to hasten the transition of STS meters to prevent service interruptions.
NERC cautioned that fines would be imposed for every meter not transitioned by the deadline.
The Commission reiterated that according to the Customer Protection Regulation 2023, DisCos are required to substitute outdated or malfunctioning meters at no cost to customers and must not transition them to estimated billing.
