The Electricity Price Hike Fully Explained

In the most recent news, the Nigerian Electricity Regulatory Commission (NERC) and the Distribution Companies (Discos) on the 1st of September implemented an increase in the unit price of electricity. The last unit price for electricity was set in 2015. The news has been received with protests and threats of protests.

The Best Protest Is To Go Solar!

As the nation prepares to deal with waves of protests regarding the news, the most intelligent and pragmatic response to the news is to go full time solar. Considering the economic storms of our time, it is most unlikely that the price hike would be reversed.

A stand-alone inverter and battery system would still depend on grid power to charge. But a well-designed solar and battery system guarantees 24-hour electricity while eliminating any concerns for the effects of the fuel and electricity hike. SolarKobo has a financial plan that enables its customers to spread their investment in a solar power system over a period reaching up to twelve months. After installation, SolarKobo provides maintenance service for its customers across Nigeria.

A Long Time Coming?

On December 31, 2019, NERC disclosed its plans to immediately review electricity tariffs in the country from January 1. The order, titled December 2019 MYTO Minor Review Order for the 11 electricity distribution companies (DISCos), was jointly signed by the Chairman of the Commission, Prof. James Momoh, and the Commissioner for Legal, License & Compliance, Dr. Dafe Akpeneye.

But the commission said that the new tariff regime would not take effect until April 1, 2020 to allow it sufficient time to consult all the interest groups following misgivings by many Nigerians.

By time April 1, 2020 the coronavirus pandemic entered into full swing forcing the lockdown of activities across many sectors and again, the implementation of the hike was postponed until July 1. After a meeting between the leadership of the National Assembly, the DisCOs and NERC, the hike was postponed to the first quarter of next year. The NAS while admitting that the tariff increase had become a necessity argued that the timing was bad as Nigerians are still reeling from the negative effects of the COVID-19 Pandemic.

What Electricity Users Will Pay Henceforth

The unit price of electricity is determined by factors that includes but are not limited to the number of hours electricity is supplied to a consumers; breaking consumers into bandwidths, among others.