NERC Slashes Electricity Tariff for Customers on Band A for All DisCos

• The Nigerian Electricity Regulatory Commission has instructed electricity companies to slash their rates for Band A customers
• The new tariff is expected to be implemented by AEDC, PHEDC, and EEDC, among others, including Ikeja Electric
• The decision to slash electricity rates will come as good news for Nigerians already stretched by the cost of living

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigerian Electricity Regulatory Commission (NERC) has approved a new electricity tariff for customers under the Band A category for all distribution companies (DisCos) in the country.

According to a circular signed by the management of the commission on Monday, May 6 2024, Band A customers will now pay N206.8 per kWh of electricity.

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The new tariff represents an 8.1% rate cut compared to the previous rate of N225/kWh announced on April 3, 2024.

According to the NERC, band A customers are those who enjoy a minimum of 20 hours of electricity supply in the country.

NERC explained the new electricity tariff

In its statement, NERC said that revising the 2024 MYTO for Band A customers reduced tariffs for all discos, Punch reports.

The statement reads.

“Pursuant to the tariff methodology adopted by the Nigerian Electricity Regulatory Commission, the Commission has issued a revised tariff order covering May 2024 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.

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“The Commission reaffirms its commitment to providing a balanced and effective regulatory regime serving the needs of the Nigerian Electricity Supply Industry."

List of communities affected by new electricity tariff

Earlier, Legit.ng reported the areas affected by the new electricity tariff in some areas in Lagos state.

Those affected are to adjust to the new tariff even as the electricity company has started informing them.

Ikeja Electric has released a list of communities in Band A and those in Band B, C, D, and E.

Some of the areas are under Ikorodu, Ikeja, Oshodi, Abule Egba and more.

Source: Legit.ng