Written by: Adeyemi Lahanmi
In a welfaristic approach, the Ikeja Electricity Distribution Company (IKEDC) has announced a reduction on it’s tariff for its Band A. The amount was slashed to N206.80 per kilowatt-hour from the N225/kWh earlier approved by the Nigerian Electricity Regulatory Commission.
Spokesperson for the IKEDC, Olufadeke Omo-Omorodion announced this disclosed this in a notice on Monday.
According to the notice, the reduction in the tariff review of the Band A customers would take effect from Monday, May 6, 2024.
While noting that the tariffs of customers on other bands remains unchanged, those on Band A would enjoy a minimum of 20 hours daily power supply.
The Nigerian Electricity Regulatory Commission (NERC) also confirmed the approval of 8.1% electricity tariff rate cut for customers under Band A category for all power distribution companies in the country (DisCos).
In a circular signed by the management of the commission on Monday, the reduction in tariff charges 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.
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.
Also, the commission expressed its dedication to maintaining a regulatory environment that balances the interests of the consumers with the sustainability of the electricity supply industry. This tariff reduction is part of the Commission’s ongoing efforts to ensure that electricity remains affordable for Nigerians while also encouraging efficiency and improvement in service delivery by the distribution companies.
Meanwhile, the Nigerian Labour congress and the Trade Union Congress, had threatened a shutdown of operations should the Federal government insist on the tariff increase. This was after the minister of power had earlier said that increasing the tariff is the only way in having sufficient power supply in the country.
