The Kano Electricity Distribution Company (KEDCO) Tuesday said it will ensure upward migration of customers from lower service bands to Band A service level in its franchise area.
Blueprint reports that KEDCO’s franchise area includes Kano, Jigawa and Katsina states.
In a statement Monday by Sani Bala Sani, head, Corporate Communications of KEDCO, the company stated that the migration is in line with the company’s target of improvement in electricity supply and quality of service.
“Also, in line with the company’s target of improvement in electricity supply and quality of service, KEDCO shall continuously ensure upward migration of customers from lower service bands to Band A service level,” KEDCO said.
KEDCO also confirmed minor reduction of tariff by the Nigerian Electricity Regulatory Commission (NERC).
The downward tariff review, according to KEDCO, is from N225.00 to N206.80 per kWh, effective 6th May 2024, in Order/NERC/2024/054 cited as May 2024 Supplementary Order to the Multi-Year Tariff Order 2024 for Kano Electricity Distribution Plc.
“Further to section 23 of the MYTO 2024 which took effect from 1st January 2024, and the subsequent April 2024 Supplementary Order which saw an increase in the Band A tariffs, the May Supplementary Order seeks to reflect the changes in the pass-through indices outside the control of licensees including inflation rate, NGN/USD exchange rate, available generation capacity, and gas price for the determination of Cost-Reflective Tariffs.
“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,” the firm said.
The statement added that according to the NERC order, the approved tariffs shall remain in force subject to monthly adjustments of pass-through indices including inflation rates, NGN/USD exchange rates, and gas-to-power prices.
It also said, “reacting to the development, KEDCO’s managing director and CEO, Abubakar Yusuf, said the tariff adjustment is a welcome development, reflective of the regulator’s steadfastness towards the provision of regulations that conform with prevailing realities, for sustainable growth of the power sector.”
