The Nigerian Electricity Regulatory Commission (NERC) has confirmed the approval of 8.1% electricity tarif rate cut for customers under Band A category for all power distribution companies in the country (DisCos).
This is contained in a circular signed by the management of the commission on Monday.
According to the statement, the tariff cut from 225/kWh to 206.8/kWh, which represents approximately 8.1% reduction, is attributed to the relative appreciation of the Naira in the official foreign exchange window.
NERC said that the revision of the 2024 MYTO for Band A customers led to a reduction in tariffs for all discos.
- “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,” the statement reads.
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Earlier today, Nairametrics reported that Ikeja Electric (IE) reduced its electricity tariff for customers in Band A from N225/kWh to N206.80/kWh.
According to a circular signed by the company’s management, IE stated that these customers will now pay N206.80/kWh instead of the N225/kWh previously mandated by the NERC.
The statement also assured that IE would deliver 20 to 24 hours of electricity daily to customers in this band, while maintaining the same tariffs for users in other categories.
Recommended reading: Breaking: Ikeja Electric slashes Tariff for Band A customers
Backstory
On April 3, Nairametrics reported earlier that the Nigerian Electricity Regulatory Commission (NERC) increased the electricity rates to N225 per kilowatt-hour (KWh) for customers in Band A category.
This is contained in a press statement by the Vice Chairman of NERC Musliu Oseni.
Oseni stated that these customers represent 15% of the nation’s 12 million electricity consumers.
He added that because the required electricity supply hours were not met, the commission shifted some customers from Band A to Band B.
- “The order takes effect from today and in that order the commission has approved a rate review of N225 per killowatt hour for just under 15% of the customer population in NESI.
- “That means that less than 15% of the customers will be affected,” Oseni said.
He, however, said that the review would not impact customers in the other Bands.
Recommended reading: New hike in electricity tariff to reduce subsidy for 2024 by N1.14 trillion – NERC
