NERC slashes Band A electricity tariff to N206.80/kwh

By Chris Ochayi

ABUJA: The Nigerian Electricity Regulatory Commission, NERC, has slashed electricity tariff of Band A customers from N225 per kilowatt hour (kWh) to 206.80/kWh.

The NERC, therefore, directed the 11 Electricity Distribution Companies, DISCOs ,operating in the country to revert to the new tariff regime with immediate effect.

This directive was contained in the Commission’s May 2024 Supplementary Order to the DISCOs, effective from 6th May 2024.

Recall that on April 3, 2024, the Commission approved a tariff increase of N225kWh for Band A customers from the previous tariff of N68kWh, pointing to the rise in Inflation, Exchange Rates and Gas Prices as reasons for the upward review of the tariff.

This, it said, was to allow DISCOs recover sufficient revenue to incentivize investments necessary for continuous improvement in service delivery.

A statement issued by the management of NERC noted that, “Pursuant to the tariff methodology adopted by the Nigerian Electricity Regulatory Commission, a revised tariff order covering the month of May 2024 has been issued by the Commission to the eleven (11) electricity distribution companies.

“The Commission has considered changes in the macroeconomic parameters over the preceding month of April 2024 and especially the appreciation of exchange rates – consequently the Commission has approved a downward review of end-user tariffs for Band “A” customers from NGN225/kWh to NGN206.8/kWh.

“The Commission reaffirms its commitment to providing a balanced and effective regulatory regime serving the needs of the Nigerian Electricity Supply Industry.”

Meanwhile, some Electricity Distribution Companies, DISCOs have already keyed into the implementation of directive by regulatory agency.

The Management of Kaduna Electric has announced a downward review in the tariff of its Band A feeders from N225/kWh to N206.80/kWh.

This was contained in a Public Notice signed by its Head, Corporate Communication, Abdulazeez Abdullahi on Monday, May 6, 2024.

The Company, through the Public Notice informed that the review which is effective from 6th May 2024, affects both prepaid and postpaid customers.

While assuring customers on its Band A feeders of continued availability of 20-24hrs supply daily as stipulated in the Service Based Tariff regime, the company noted that the tariff for Bands B, C, D, and E remains unchanged.

In the same vein, the Ikeja Electricity Distribution Company also announced a reduction in tariffs for Band A electricity customers.

The company announced a reduction in its electricity tariff for customers categorised under Band A, lowering the rate from N225 per kilowatt-hour (kWh) to N206.80/kWh.

This adjustment, detailed in a circular issued by the company’s management on Monday, indicates that customers in this band will now pay N206.80/kWh instead of the previously stipulated N225/kWh as directed by NERC.

The statement also assured customers in Band A of a guaranteed electricity supply ranging from 20 to 24 hours daily.

Meanwhile, the tariff rates for customers in other categories, including Bands B, C, D, and E, remain unchanged.

The statement read, “We wish to inform you of the revision in our tariff rates for customers in Band A, effective 6th May 2024”.

“The new rate is N206.80/kWh, down from the previous N225/kWh, with a commitment to provide 20-24 hours of electricity daily. Please note that there is no change in the tariff for customers in Bands B, C, D, and E,” it added.