NERC reduces cost of electricity for Band A customers

The Nigerian Electricity Regulatory Commission (NERC) has reduced the cost of electricity for its Band A customers.

This downward review is contained in the commission’s revised tariff order for the month of May 2024.

According to a statement on Monday, the management of the commission issued the new tariff order to the eleven electricity distribution companies in the country.

The statement reads: “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 restated its commitment to providing a balanced and effective regulatory regime to serve the needs of the Nigerian Electricity Supply Industry.

In response to the new tariff order, the management of Kaduna State Electricity Distribution Company, on Monday, also announced a downward review of the tariff from N225/kWh to N206.80/kWh, to Band A customers under its franchise areas.

The review was contained in a notice signed by the company’s head of corporate communications, Abdulzeez Abdullahi.

While assuring customers on Band A of a stable availability of 20-24hrs supply daily as stipulated in the Service Based Tariff regime, the Kaduna DISCO said that the new review would take effect from May 6 (yesterday) 2024, and would affect both prepaid and postpaid customers.

Also, the Abuja Electricity Distribution Company (AEDC) informed its customers on Band A of tariff reduction from N225/kWh to N206.80/kWh effective May 6.

The Ikeja Electricity Distribution Company also announced tariff reductions for Band A customers in line with the commission’s approval.

The spokesperson for the IKEDC, Olufadeke Omo-Omorodion, made this disclosure in a notice on Monday.

According to the notice, the downward tariff review of the Band A customers took effect on Monday, May 6, 2024.

Under the approved review, Band A customers who were previously charged N225/Kwh, are to pay N206.80/Kwh

“Please be informed of the downward tariff review of our Band A feeders from N225/kWh to N206.80/kwh effective 6th May 2024 with guaranteed availability of 20-24hrs supply daily,” the notice said.

Recall that in April, NERC approved an upward review in electricity tariffs for customers under the Band A classification. With the new move, customers under the category expected to receive 20 hours of electricity supply daily were to pay N225 per kilowatt, starting from April 3 — up from N66.

However, the commission is silent on the tariffs for Bands B, C, D, and E.