Discos succumb to pressure, reduce electricity tariff for Band A customers

The Ikeja Electricity Distribution Company (IKEDC) and other electricity distribution companies in the country have announced a reduction in the tariff of customers under Band A classification to N206.80 per kilowatt-hour (kwh).

The Nigerian Electricity Regulatory Commission (NERC) had last month raised the tariff for Band A customers to N225/kWh from the previous N66/kWh.

The commission said customers under the classification are those who receive 20 hours of electricity supply daily.

Announcing the slash in a circular on Monday, Ikeja Electricity Distribution Company (IKEDC) said the new tariff regime would take effect from May 6, 2024.

The spokesperson for the IKEDC, Olufadeke Omo-Omorodion, disclosed this in a notice posted on X (formerly Twitter) platform on Monday.

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

The statement read: “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.”

In a statement on Monday, Sani Sani, head of corporate communications, Kano DisCo, said the downward review of the tariff followed an order by NERC.

“In line with the Federal Government of Nigeria’s policy direction on electricity subsidy, only Band A customer categories are affected by the minor review, and Band B – E customer categories shall remain frozen at the rates payable since December 2022, subject to further policy direction by the Government.”

Sani said the newly approved tariffs would remain in force and would be subject to “monthly adjustments of pass-through indices including inflation rates, NGN/USD exchange rates, and gas- to-power prices”.

Reacting to the development, Abubakar Yusuf, KEDCO’s managing director, welcomed the tariff adjustment as a sign of the regulator’s commitment to sustainable power sector growth.

He reiterated the firm’s continuous service delivery improvement as agreed under service-based tariff (SBT) proposals.

Also, announcing the tariff review in a statement on Monday, the Port Harcourt DisCo said “the guaranteed availability of a minimum of 20 hrs per day still stands”.

The decision to reduce the tariff may not be unconnected with public outcry over the increase in electricity by civil society organisations, and labour unions.

However, the tariffs for Bands B, C, D, and E remain unchanged.