Electricity

Cost Savings Amidst Electricity Tariff Hikes

By Khadijat Kareem

April 10, 2024

+Average Electricity Usage of Household Appliances

Cost Savings Amidst Electricity Tariff Hikes

The Nigerian Energy Regulatory Commission (NERC) approved an increase in the tariff paid per kilowatt hour of energy from approximately N66 to N225 for the country’s electricity distribution companies (DisCos).

NERC further indicated that just a percentage of the over 3,000 DisCos’ feeders, or fewer than 481 feeders, will be affected, accounting for 15% of the over 12 million customers captured in the Nigerian Electrical Supply Industry (NESI). 

These 15% of the 12 million users are captured under the Band A electrical width.

According to the Nigerian Electricity Regulatory Commission (NERC), there are five electrical bands: A, B, C, D, and E. Customers in Band A are entitled to a minimum of 20 hours per day; Band B customers have a minimum of 16 hours of light per day, and Band C customers have a minimum of 12 hours per day.

In the wake of a staggering 240% increase in electricity tariffs for ‘Band A’ customers, Nigerians find themselves grappling with higher bills and a need for smarter energy management. 

If you have been wondering if you are your area’s electricity distribution company ” favourite” due to the constant power supply in your home, you’re most probably under the band A width. 

Then, this edition of Pocket Science presents you with a life buoy against exorbitant bills. 

First, let’s clear a misconception, Band A electricity width users are more common in urban areas due to better infrastructure, but it’s not exclusive to urban areas, and not all urban areas necessarily fall under the Band A classification.

So, this means the increase in electricity tariffs would most likely affect all income groups and classes, as long as they use the Band A electricity width.

The recent tariff hike isn’t discriminating based on your postal code. It’s coming for everyone under the Band A width. That means whether you’re sipping champagne or sipping garri, you’ll feel the pinch.

Energy Consumption: The Usual Suspects

According to Nigeria’s Multiple Indicator Cluster Survey (MICS), urban areas boast higher ownership rates of electrical appliances, reflecting greater access to electricity, higher incomes, and a desire for modern conveniences.

Among the most used electrical appliances are fans, televisions, and electric irons.  

Average Electricity Usage of Household Appliances

It’s important to know how much power your devices consume, particularly during these times or if you’ve been your electricity distribution company’s favourite (Band A).

You may make informed decisions by timing how long it takes for each appliance to consume a unit of electricity.