Electricity Tariff Hike Leaves Band A Consumers Stranded Without Prepaid Meters

The recent implementation of Nigeria’s new electricity tariff regime has brought to light a concerning issue: over 20% of consumers categorized as Band A find themselves without prepaid meters. This oversight not only complicates bill settlement but also perpetuates reliance on estimated billing—a practice widely criticized for its lack of transparency and potential for exploitation.

Band A customers, who typically enjoy a minimum of 20 hours of electricity daily, were expected to have greater control over their bills through transparent metering processes. However, the absence of prepaid meters has left them vulnerable to estimated billings, which often result in inflated charges and financial strain.

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Under the new tariff structure, Band A consumers face a staggering 230% increase, with rates skyrocketing from N68 to N225 per kilowatt-hour. Despite this substantial hike, the lack of accurate metering infrastructure continues to pose challenges for a significant portion of consumers in this category.

In response to these concerns, Dr. Musiliu Oseni, Vice Chairman of the Nigerian Electricity Regulatory Commission (NERC), has directed Electricity Distribution Companies (DisCos) to prioritize the metering of Band A customers. This directive aims to address the disparity between tariff increases and the provision of essential metering infrastructure.

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The absence of prepaid meters not only undermines consumer confidence but also hinders efforts to establish a fair and transparent billing system. Businesses, particularly Small and Medium Enterprises (SMEs), express apprehension over the prospect of estimated billings, which could lead to financial uncertainty and operational challenges.

In light of these pressing issues, stakeholders emphasize the urgent need for DisCos to expedite the deployment of prepaid meters to Band A consumers. By doing so, transparency can be enhanced, empowering consumers to monitor and manage their electricity consumption effectively.

As Nigeria continues to navigate the complexities of its energy sector, ensuring equitable access to prepaid meters becomes paramount. This will not only foster trust and accountability within the electricity distribution ecosystem but also promote sustainable energy practices for the nation’s future.

Source: Vanguard Nigeria

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