FG agrees to pay 1.6trn Subsidy in 2024, high-cost of electricity bill to reduce

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The Nigerian Electricity Regulatory Commission, NERC has released a new electricity tariff for the eleven electricity distribution companies, DisCos but they, however, outlined that the utilities cannot implement the hike because the federal government recently agreed to pay the 1.6 trillion as a subsidy for consumers in 2024.

NERC in an official statement, outlined that the electricity Tariff will remain constant as it has been since 2022.

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A confirmed analysis also outlined that the federal government will advance in 2024 to pay 233.26 billion or 19.44 billion as a subsidy for consumers under the control of the Abuja Electricity Division Company AEDC, Franchise.

NERC also revealed that AEDC has applied for 151.07 identified as a cost reflective Tariff per kilowatt hour, however, the commission only approved 120.88 per kilowatt hour. This will allow to pay 63.4/KWh, while the government will pay 58.12/KWh.

For the Ikeja Electricity consumers, the federal government will pay off 238.20 billion as their recorded subsidy in 2024. The Ikeja reflective tariff ranged at 128.18KWh and approved the commission of 112.10KWh. With this Tariff influence, consumers will be charged 56.60KWh while the government will embody 55.50KWh as a subsidy.

NERC in an official statement also disclosed that consumers under the Enugu DisCo Franchise will also be covered as the government will cover subsidy worth 129.99 billion in 2024. The electricity body operating in the area, EEDC applied for a reflective tariff worth 155KWh but was approved for the commission of 128KWh. This, in turn, will allow consumers to be charged 59kWh while the government will cover 69.40KWh as the state subsidy.

Identifying the FG aim for subsidy in 2024, the NERC chairman, Egr. Sanusi Garba disclosed that they are striving so hard to reduce the cost of electricity in all states.

His words:

“For the first time, we have published what each DisCo should charge and we have also published the amount they are allowed to charge based on government policy because the government has decided to in the meantime continue to pay subsidies.”

“If you check the order, you will see that tariffs are not going up but you will see what the DisCos should have been charging and you can also see in the tariff order the number of subsidies the government will be paying to cover the gap”

Civilians had been on their toes since the revelation as they kept in touch with heated reactions deploying their views on the new system.