DisCos Announce Tariff Hike for Band A Customers
Nigeria’s electricity distribution companies (DisCos) have announced an upward review of electricity tariffs for Band A customers, effective from July 1. According to statements posted on the DisCos’ X handles, the new tariffs follow an earlier directive from the Nigerian Electricity Regulatory Commission (NERC) for an immediate upward review of electricity tariffs.
NERC Vice Chairman, Musiliu Oseni, stated that the tariff hike would affect only 15% of electricity consumers. Accordingly, power distribution companies will raise electricity prices to N225 ($0.15) per kilowatt-hour from N68.
On April 30, the House of Representatives asked NERC to suspend the tariff hike pending an investigation by the House. This resolution followed a motion of urgent public importance moved by Kama Nkem-Kanma (LP, Ebonyi) during a plenary session. Nkem-Kanma’s motion criticized the arbitrary hike in tariffs and the discriminatory nature of the policy.
Following the resolution by the House, DisCos announced a tariff reduction on May 6, stating that customers in Band A would now pay N206.80/kWh, down from N225/kWh. However, on Wednesday, DisCos announced a new tariff of N209.5/kWh for Band A customers, up from N206.80/kWh. The tariff for Bands B, C, D, and E remains unchanged.
The Port Harcourt Electricity Distribution Plc (PHED) stated: “Dear esteemed customers, please be informed that there is an upward tariff review for our Band A feeders from N206.80/kWh to N209.5/kWh effective 1st July 2024. The guaranteed availability of a minimum of 20 hours per day still stands. The tariff for Bands B, C, D, and E remains unchanged.”
The Kaduna Electricity Distribution Company (Kaduna Electric) announced: “Dear esteemed customers, the management of Kaduna Electric informs the public of an upward review in the tariff of Band A feeders from N206.80/kWh to N209.5/kWh. The review is effective from 1st July 2024 and affects prepaid and postpaid customers. Kaduna Electric assures customers on its Band A feeders of the continued availability of 20-24 hours daily as stipulated in the service-based tariff regime. The public should please note that the tariff for Bands B, C, D, and E remains unchanged.”
Meanwhile, Ikeja Electric Plc informed its customers: “Dear esteemed customers, kindly note the review in tariff of Band A feeders from N206.80/kWh to N209.5/kWh effective 1st July 2024, in line with the service-based tariff regime. The tariff for Bands B, C, D, and E remains unchanged. Our customers can be assured that this development will further sustain the improved service delivery currently being experienced across all feeder bands within Ikeja Electric network.”
This announcement underscores the ongoing adjustments in Nigeria’s electricity pricing structure, aimed at balancing the need for improved service delivery with the economic realities facing both the providers and consumers of electricity.
