NERC increases tariff for Band A by 1.3% amid calls for reduction

Nigerian electricity tariffs for Band A customers increased by 1.3%. NERC cites financial challenges in the power sector and aims to improve supply. This comes despite calls for reduction. The increase only affects Band A, high-consumption users.

Jul 5, 2024 - 10:01

NERC increases tariff for Band A by 1.3% amid calls for reduction

Nigerian Electricity Regulatory Commission, NERC, has announced a 1.3 per cent increase in tariffs for Band A customers as captured in the Multi-Year Tariff Supplementary Order, MYTSO.
This was even as Nigerians, especially labour unions are calling for tariff reduction arguing that the economic burden on consumers was already too high.
The new tariff adjustment will see rates increase from N206.80/kWh to N209.50/kWh, to address financial challenges in the power sector and improving the quality of supply.
NERC had in May this year, reviewed the electricity tariffs for Band A customers from N225/kWh to N206.8/kWh, following

a 240 per cent increase 33 days earlier, from N68/kWh.
The increase in tariff for Band A customers was to take effect immediately to ensure, at least, 20 hours power supply to the customers, even as it was gathered that the revised tariff structure would impact residential, commercial and industrial consumers within Band A, who are high-consumption users.
NERC noted that the tariff revision, aligned with ongoing efforts to streamline electricity pricing while ensuring equity and sustainability within the Nigerian Electricity Supply Industry, NESI.
According to a statement by the Acting Managing Director of Ibadan Electricity Distribution Company, IBEDC, Francis Agoha, rthe tariff would be adjusted from N206.80/kWh to N209.50/kWh with immediate effect.
Agoha stressed that the adjustment was necessitated by several key economic indices, including fluctuations in the exchange rate, inflation rate, available generation capacity and the cost of gas, adding that the factors that necessitated the increase significantly impacted operational costs, hence the new tariff would mitigate the financial pressures while continuing to deliver high-quality services.

“It is important to note that this adjustment affects only our Band A customers. The tariffs for Bands B, C, D and E remain unchanged. We remain committed to providing reliable and efficient electricity services to all our customers across different bands. Our goal is to ensure that you receive the best possible value for your money.” Agoha added.

Furthermore, the Kaduna DisCo and Ikeja Electric have announced an increase in tariffs for its Band A customers. The Head, Corporate Communication at Kaduna DisCo, Abdulazeez Abdullahi, said the adjustment, effective from July 1, 2024, affected both prepaid and post-paid customers.
Meanwhile, Ikeja Electric said it obtained NERC’s approval to add 13 Band A feeders to its network, based on its ability to provide a minimum of 20 hours of power daily during a performance evaluation period monitored by the regulator, assuring customers that the development would further sustain the improved service delivery being experienced across all feeder bands within its network.