Electrical energy subsidies rise to N199.6bn – NERC

The Nigerian Electrical energy Regulatory Fee has disclosed that the federal authorities’s electrical energy subsidies payable for December have risen by 2.76 per cent to N199.64 billion from the N194.26 billion incurred in November.

The fee disclosed this in its December 2024 Multi-12 months Tariff Order posted on its web site on Tuesday.

It additionally retained electrical energy tariffs throughout all buyer classes. Whereas band-A clients continued to pay N209/kWh, allowed tariffs for purchasers in Bands B to E remained frozen on the price payable from December 2022.

With the coverage, the federal government is anticipated to pay N29.10bn (up from N27.86bn in November) as subsidies for customers underneath Abuja Disco. Whereas customers underneath Ikeja Electrical would get pleasure from electrical energy subsidies of N26.68bn from the federal government.

NERC defined that the rise within the change price, which it pegged at N1,687.45 to the greenback, enhance in inflation to 33.9 per cent, and modifications in obtainable era capability necessitated the minor overview.

On wholesale gas-to-power costs, NERC said, “The overview maintains the benchmark gas-to-power value of $2.42/MMBTU primarily based on the established benchmark value of gas-to-power by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.”

The fee maintained that the “permitted tariffs shall stay in power topic to month-to-month adjustment of pass-through indices together with inflation price, NGN/greenback change price and gas-to-power costs.”

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