In a move set to provide relief to many Nigerian households, the Nigerian Electricity Regulatory Commission (NERC) has announced a reduction in electricity tariffs for Band A customers, effective immediately.
This decision comes on the heels of the Naira’s average exchange rate against the US Dollar falling to N1400, a 14 percent decrease from the previous average of N1600.
Ikeja Electric Distribution Company Leads the Way
Leading the implementation of the tariff reduction, Ikeja Electric Distribution Company (IE) has announced a revised electricity tariff for customers categorized under Band A, lowering the rate from N225 per kilowatt-hour (kWh) to N206.80/kWh, effective from May 6, 2024.
In a circular issued by the company’s management on Monday, the adjustment means that customers in this band will now pay N206.80/kWh instead of the previously stipulated N225/kWh as directed by NERC. The statement also assures customers in Band A of a guaranteed electricity supply ranging from 20 to 24 hours daily.
No Change for Other Bands
However, the tariff rates for customers in other categories, including Bands B, C, D, and E, remain unchanged, according to the statement from Ikeja Electric.
“We wish to inform you of the revision in our tariff rates for customers in Band A, effective 6th May 2024,” the statement read. “The new rate is N206.80/kWh, down from the previous N225/kWh, with a commitment to provide 20-24 hours of electricity daily. Please note that there is no change in the tariff for customers in Bands B, C, D, and E.”
This tariff reduction is expected to provide significant relief for many Nigerian households, particularly those in Band A, as the country continues to grapple with economic challenges and the rising cost of living.
