SOME distribution companies (DisCos) have effected implementation for a downward review of the electricity tariff for Band A customers, which was increased by over 200 per cent in April.
The downward review directive was contained in the Nigerian Electricity Regulatory Commission’s (NERC) May 2024 Supplementary Order to the DisCos, effective May 6, 2024.
The head of public affairs at NERC, Usman Arabi, explained that the decision was based on the current reduction in the foreign exchange (FOREX), one of the components considered before the tariff increase.
For instance, Ikeja Electricity Distribution Company has reduced the electricity tariff payable by its Band A customers to N206.80 per kilowatt-hour from the N225/kWh earlier approved by NERC.
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The spokesperson for the IKEDC, Olufadeke Omo-Omorodion, confirmed this development in a notice on Monday.
According to the notice, the downward tariff review of the Band A customers would take effect from 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 statement said.
Similarly, Kaduna Electric’s management has announced to the customers under its franchise areas a downward review of the tariff for its Band A feeders from N225/kWh to N206.80/kWh.
The review was contained in a statement signed by the company’s head of corporate communications, Abdulzeez Abdullahi. It is effective from 6 May 2024 and affects both prepaid and postpaid customers.
Kaduna Electric assured customers in its Band A feeders of the continued availability of 20-24hrs supply daily as stipulated in the Service Based Tariff regime.
The Abuja Electricity Distribution Company (AEDC) has also informed customers in its franchise areas under Band A feeders of tariff reduction from N225/kWh to N206.80/kWh effective today, May 6.
The decision to crash the tariff may not be unconnected with public outcry over the increased cost of electricity, which industry observers, civil society organisations and labour unions have described as insensitive.
Tariffs for Bands B, C, D, and E remain unchanged
In April, NERC approved an increase in electricity tariff for customers under the Band A classification. With the new tariff, 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.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.