The Nigerian Electricity Regulatory Commission (NERC) has announced a downward review of the recently increased electricity tariff.
The commission revealed in an X statement shared earlier today that the electricity tariff for Band A users has now been reduced by around 8%. The tariff has now been reviewed from N225/kWh to N206.8/kWh effective from May 6, 2024.
“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.”
According to the NERC, the reduction follows the recent appreciation of the Nigerian Naira in the official foreign exchange window. Hence, the Commission has ordered the Eleven distribution countries to implement the reduction for the month of May 2024.
Following the order, several electricity distribution companies including Ikeja Electric (IE) and Ibadan Electricity Distribution Company (IBEDC) among others have implemented the reduction. As of press time, an examination of the IE website confirms the adjustment.
Similarly, the Eko Electricity Distribution Company (EKEDP) confirmed the reduction to its customers.
“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.”
Meanwhile, the reduction follows a recent statement by the Federal Government to maintain the recently increased tariff plan. Notably, the government argued that the increment was necessary to reduce its spendings on Electricity subsidy. In addition, the government noted that following the tariff hike, it has saved the country about N1.5 trillion.
However, despite the downward review, the electricity tariff remains considerably high compared to its previous N68/kWh rate.
