By Adewale Sanyaolu
The Nigerian Electricity Regulatory Commission(NERC) has sanctioned a downward review of electricity tariff for Band A customers from N225/kWh to NGN206.8/kWh.
The review, which covers 12 million consumers across the 11 Discos, is for May.
A statement by NERC made available to Daily Sun said: “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,”
In arriving at the new tariff, the Commission said it 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,”.
In a swift compliance with the order, Ikeja Electric in a notice to its customers on Monday said “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.
The tariff for Bands B, C, D, and E remains unchanged,”.
NERC had in April increased electricity tariff paid by Band A customers from N68/KWh to N225/kWh.
Though, the recent hike in electricity tariff has not gone without backlash as members of the organised private sector, including the Manufacturers Association of Nigeria (MAN), consumer advocacy groups and social media commentators have called on the Federal Government to reverse the increase without delay.
A recent data analysis by Daily Sun showed that Band A customers would spend about N54 billion in 20 hours.
The Discos revenue generation figure according to further data analysis by Daily Sun showed that N225 per kilowatt hour multiplied by 12 million electricity consumers translates to N2.7 billion in one hour of electricity consumption, when 12 million consumers is further multiplied by 20 hours which is the minimum hour of consumption under Band A, that gives a whopping N54 billion.
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