Victor EzejaThe Nigerian Electricity Regulatory Commission (NERC) has announced reduction of electricity tariff for band A customers from N225 per kilowatt hour (kWh) to N206.8kWh with effect from May 2024. This is 8 per cent drop in the tariff set in April.
The electricity regulatory body made this known in a statement released on Monday, 6 May 2024.
According to the statement, the decision was based on changes in the macroeconomic parameters over the preceding month of April 2024, especially the appreciation of the naira in the foreign exchange market.
NERC therefore directed the 11 electricity Distribution companies (DisCos) holding franchises in different regions across the country to commence implementation with immediate effect by adjusting their tariff for band A customers.
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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 reaffirms its commitment to providing a balanced and effective regulatory regime serving the needs of the Nigerian Electricity Supply Industry.”
Prime Business Africa recalls that the Commission had last month hiked the electricity tariff for band A customers from an average of N68kWh to N225kWh which is about 230 per cent increase.
This generated reactions from Nigerians and other stakeholders including employers of labour in the private sector who lamented the potential impact both on the citizens and the economy as it would lead to rise in energy costs.
In line with the Multi-Year Review Order (MYTO) which stipulates occasional review of electricity tariffs, NERC considers the prevailing exchange rate between the naira and dollar, the price of natural gas used by power plants, and the inflation rate.
Band A customers, according to NERC, are those who are supposed to enjoy a minimum of 20 hours of electricity supply.
There have been complaints by customers across the country who are on band A but do not receive up to 20 hours of electricity supply.
To address that, NERC had mandated DisCos to regularly publish feeders on band A where customers did not receive the required minimum hours of electricity.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
