Respite Monday came the way of Nigerian electricity consumers as the Nigerian Electricity Regulatory Commission (NERC) approved a downward review of electricity tariff for Band ‘A’ customers from N225/kWh to N206.80/kWh.
This downward review, which according to the calculation is N18.20 by kWh reduction, however, did not go down with some Nigerians who called for the reversal to an old tariff of N68 per kilowatt-hour.
“Pursuant to the tariff methodology adopted by the NERC, 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’’, NERC stated.
…Earlier hike and accompanying criticism
The NERC had , last month ordered the immediate upward review of electricity tariffs, which the Commission’s Vice Chairman, Musiliu Oseni, said only 15 per cent of the electricity consumers were affected.
Accordingly, he said, power distribution companies (DisCos) will be allowed to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68.
The NERC’s decision was greeted by criticisms, and on 30 April, the House of Representatives asked the regulatory agency to suspend the tariff hike pending the outcome of its investigation.
It also resolved to set up a special committee to probe the power sector.
The resolution followed a motion of urgent public importance moved by Kama Nkem-Kanma (LP, Ebonyi) during plenary.
Also, the Federal High Court sitting in Kano had issued an interim order stopping the NERC and the Kano Electricity Distribution Company(KEDCO) from implementing a new increased electricity tariff for Band A consumers in the DisCo’s franchise area.
Justice A.M. Liman granted the interim order in response to an ex-parte motion brought by A.B. Mahmoud (SAN), representing Super Sack Company Limited, BBY Sacks Limited, Mama Sannu Industries Limited, Dala Foods Nigeria Limited, Tofa Textile Limited, and the Manufacturers Association of Nigeria Limited, MAN, all as applicants.
The ruling barred NERC and KEDCO from implementing the tariff increase, which was scheduled to take effect this May, pending a hearing and determination of the motion on notice.
…The down review’s compliance
However, NERC’s directive took effect on 6 May, and some of the nation’s distribution companies (DisCos) complied with the new directive as posted on their various social media handles.
Announcing the reduction Monday, the distribution companies said customers in Band A will now pay N206.80/kWh from N225/kWh.
The companies noted that the tariff for Bands B, C, D, and E remains unchanged.
Ikeja Electric Plc in a statement, said: “Dear esteemed customers, 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 20-24 hrs supply daily.
“The tariff for Bands B, C, D, and E remains unchanged,” it said.
Also, the Port Harcourt Electricity Distribution Plc (PHED) said: “Dear esteemed customers, Please be informed of the downward tariff review of our Band A feeders from N225/kWh to N206.80/kWh effective 6th May 2024. The guaranteed availability of a minimum of 20 hrs per day still stands.
“The tariff for Bands B, C, D, and E remains unchanged,” it said.
Also, the Eko Electricity Distribution Company (EKEDC) said: “Dear valued customer, kindly be informed that our Band A feeders’ tariff rate has been reviewed downwards, effective Monday, 6th May 2024, from N225/kWh to N206.80/kWh with a guaranteed minimum daily power supply of 20 hours.”
Similarly, the KEDCO in a statement, said: “Dear esteemed customers, This is to kindly inform the general public of the downward tariff review of our Band A feeders from N225/kWh to N206.80/kWh effective 6th May 2024.
“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,” the company said.
On its part, Abuja Electricity Distribution Company (AEDC) wrote: “We are pleased to share with you the revised tariff for our Band ‘A’ feeders, which will decrease from N225/kWh to N206.80 effective May 6.
“We assure customers on our Band ‘A’ feeders of continued availability of electricity supply for 20-24 hours daily.”
Also, the Ibadan Electricity Distribution Company (IBEDC) announced that it has commenced the implementation of a downward review of tariff from N225/kWh to N206.80/kWh for Band A customers in its coverage territory.
The Lead of Media Relations, IBEDC, Mrs Busolami Tunwase, who confirmed this in an interview, said: “Customers using prepaid meters will be the first to experience the revised tariff – N206.80/kWh whenever they vend this month of May.
“While for Postpaid customers, the revised tariff will reflect in the electricity bills to be received at the end of May 2024,” she said.
Tunwase said the tariffs for bands B, C, D and E remained unchanged.
…Nigerians kick
Nigerians, however, kicked against the downward review of the electricity tariff to N206.80k and demanded its reversal to the old tariff regime of N68kWh.
A concerned Nigerian, Mr Tunde Akindele, said despite the review, the new tariff regime of N206.80 kWh was still on the high side.
He said: “Please it is still on the high side, and kindly reduce it. More people are not finding IT too easy. We are begging you, people’’.
On his part, John Chericho said: “When you increased it, you did that with 300%, and when you reduced it, you are giving us less than 10%. You people are not serious’’.
Chidiere Okereke said: “If AEDC is sincere, they know that 20hrs electricity supply daily is not possible, is a political statement.”
On her part, Sandra Madaka said: “As far as I am concerned this decrease is nothing, 10k was 41 units now 45 units, so we should be clapping for AEDC because of 4 units addition.”
Gabriel Onu, who described the development as insignificant, called for a reversal to 150 per cent, saying: “This is insignificant. At least, a reversal to 150 or thereabouts would do. Do you know how many businesses have been negatively affected by this hike NERC allowed you DisCos to embark on?”
However, Timothy Shonde said: “With the band self is their power. Nigerians are not saying they will not pay. They are asking why I will pay for something I am not benefiting from.”
