Smart Ways to Cut Electricity Cost

It is no longer news that households and manufacturers are not finding the present electricity cost pleasant. This especially speaks to Band A prepaid users.

In recent times, concerns have literally shifted from inadequate supply to the exorbitant price paid to access energy. This follows the upward review of electricity tariff by the Nigerian Electricity Regulatory Commission (NERC) in 2024, which raised rate for Band A customers in April 2024 by up to 300 percent.

Ever since, it has never been business as usual. Despite public outcry that persists, reports indicate that the Federal government is yet considering another increase. Already, data shows that Band A users spend no less than ₦170,000 monthly on electricity, quite unsustainable where minimum wage remains at N70, 000. Many low-income households in areas upgraded to Band A are left with no alternative.

From the business side, the present cost has had a telling effect on production cost and prices of products. A recent study by the Nigerian Institute of Social and Economic Research (NISER) and presented by Lead Researcher, Dr. Iyabo Olanrele in Ibadan recently, shows firms now spend 82 percent of their monthly turnover on production costs, driven largely by electricity expenses.

Project Management Consultant, Precious Onyenweaku, warned that the ripple effects of rising electricity costs extend beyond finance, to pushing households into poverty, increase reliance on unsustainable power sources, fuel mental stress, and worsen students’ academic performance, among others.

Against this backdrop comes a stronger call for Nigerians to rethink their energy use, especially as studies prove that standby power (phantom load) accounts for up to 44 percent of annual household electricity consumption. Energy experts believe that bills can be significantly reduced through targeted upgrades and cost-saving measures to ease financial burden.

Below are some of the measures suggested:

Shift energy intensive activities to off-peak hours

Adjusting your daily routine to avoid using heavy appliances during peak periods can make a noticeable difference in your electricity costs. Instead of running your washing machine, iron, or dishwasher during high-demand hours, schedule them for early mornings or late evenings when the grid is less strained. These small shifts help to minimize consumption during expensive tariff windows, reduce overall bill, and ease pressure on the power grid.

Invest in Energy-Efficient Appliances

Replacing outdated, high-consumption appliances with energy-efficient ones helps reduce total electricity use. Consumers should check energy ratings and consumption labels before purchase. For instance, refrigerators, air conditioners, and washing machines with higher efficiency ratings consume significantly less energy.

Improve Home Energy Efficiency

Homes designed or modified to maximize natural light and ventilation can reduce dependence on artificial lighting and cooling systems. Simple retrofits like reflective roofing, proper insulation, and larger windows help maintain comfort without excessive energy use.

Adopt solar energy solutions

Given the natural gift of sunlight, solar installations are a smart option for households and SMEs. Small-scale solar systems can power lighting and charge devices, while higher-income users can integrate solar with the public grid for greater savings. This dual setup ensures reliability and shields users from tariff fluctuations.

Take advantage of flexible payment option

New partnerships between solar firms and financial institutions now let Nigerians access solar power through installments, ‘buy now, pay later,’ thus reducing upfront costs and easing affordability.

Treat electricity as a budgeted expense

Consumers are advised to treat electricity like rent — setting a monthly ceiling to avoid overspending. For example, if a household spends ₦45,000 monthly, that should be the limit. Using prepaid meter apps to set alerts or caps help track usage and avoid silent leakages from unnoticed consumption.

Unplug idle electronics

Many devices consume energy even when turned off (phantom load). This can waste up to 5–10% of monthly electricity units. Unplugging chargers, TVs, and microwaves when not in use ensures prepaid energy is not quietly drained.

Cook smart

Cooking consumes a significant portion of household power. Switching to gas cookers or energy-efficient electric cookers can save several units daily. This small adjustment reduces the overall monthly electricity budget.

Rethink energy use for SMEs

Small and Medium Enterprises should audit operations and cut dependence on energy-intensive machinery. Shifting to efficient tools or adjusting work hours reduces costs and improves competitiveness, especially amid rising tariffs.

Practice energy curtailment and environmental responsibility

Adopting eco-friendly habits i.e turning off lights, using renewable sources, and avoiding waste all benefit both the wallet and the planet. Promoting energy curtailment across homes and businesses is essential to cope with tariff hikes sustainably.

Conduct a personal energy audit

Identify the top five power-guzzling appliances in your home (e.g., ACs, heaters, irons) and plan phased replacements within six months. This gradual change significantly lowers prepaid consumption without huge upfront costs.

Switch to LED Lighting

LED bulbs are proven to cut lighting costs by over 80% compared to traditional bulbs. Still, they last longer, generate less heat, and are ideal for homes seeking quick, affordable savings.