The Nigerian Electricity Regulatory Commission (NERC) has released a new tariff order for May 2024, which will see a reduction in electricity rates for consumers.
NERC said this decision comes after a thorough review of the macroeconomic parameters and exchange rate appreciations, according to a statement by its management on Monday.
This is coming after the Nigeria Labour Congress (NLC) and Trade Union Congress threatened to shut down their operations in the country should the Federal Government insist on the tariff increment.
The Federal Government reportedly insisted on the tariff increment stating that the burden of electricity subsidy was too much for it to bear, even as the NLC threatened a shutdown.
The revised tariff order, which affects all 11 electricity distribution companies in the country, will lower the end-user tariffs for Band “A” customers from NGN225/kWh to NGN206.8/kWh. This change is expected to provide some relief to consumers who have been grappling with high energy costs.
Ikeja Electricity Distribution Company (IKEDC) announced the tariff slash earlier in the day. Band A tariff to N206.80 per kilowatt-hour from the N225/kWh approved by the Nigerian Electricity Regulatory Commission (NERC).
In response to the NERC’s order, the electricity distribution companies, Abuja, Ikeja, and Ibadan Electricity Distribution Companies, among others, have begun to reduce the tariff accordingly.
NERC has expressed its dedication to maintaining a regulatory environment that balances the interests of the consumers with the sustainability of the electricity supply industry. This tariff reduction is part of the Commission’s ongoing efforts to ensure that electricity remains affordable for Nigerians while also encouraging efficiency and improvement in service delivery by the distribution companies.
The new tariff order is a reflection of the NERC’s commitment to its tariff methodology and its responsiveness to changes in the economic landscape. It is anticipated that this move will be well-received by the public and contribute positively to the Nigerian economy.
For more information, consumers are encouraged to contact their local electricity distribution company or visit the NERC’s official website.
“The statement read, “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.
“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.
“The Commission reaffirms its commitment to providing a balanced and effective regulatory regime serving the needs of the Nigerian Electricity Supply Industry”.
