By Ken Afor
The Ikeja Electricity Distribution Company (IKEDC) has announced a reduction in the electricity tariff rate for its Band A customers.
According to a notice issued by the company’s spokesperson, Olufadeke Omo-Omorodion, on Monday, May 6, 2024, the new tariff for this customer category is set at N206.80 per kilowatt-hour.
The New Diplomat reports that this rate is lower than the previous tariff of N225 per kilowatt-hour, which was approved by the Nigerian Electricity Regulatory Commission (NERC).
The IKEDC’s decision to revise the tariff downwards is expected to provide some relief to residential and small-scale commercial customers who fall under the Band A category.
The statement noted that the reduced electricity tariff for Band A consumer category will take effect from Monday, May 6.
The tariff adjustment means that Band A customers, who were formerly subject to a rate of N225 per unit of energy consumed, will now be charged N206.80 per kWh, reflecting a decrease in their billing amount.
“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 statement said.
The IKEDC move to lower the tariff for its Band A customers could be a response to the widespread opposition and backlash against the previous electricity rate increase.
Various stakeholders, such as industry experts, civil society groups, and labour unions, had voiced their concerns, describing the hike as insensitive to public interest.
However, the revised rates only apply to the Band A category, while the tariffs for Bands B, C, D, and E remain unaltered as per the company’s statement.
It would be recalled that on April, 3, 2024, the Federal Government of Nigeria, through its regulatory agency, NERC, announced an increase in electricity tariff for affluent consumers with higher power consumption. This move aligns with the government’s strategy to reduce reliance on subsidies, and aiming to alleviate strain on public finances.
Mr. Musiliu Oseni, the vice chairman of NERC, was quoted saying: “The commission has approved a rate review of N225 per kilowatt hour for just under 15 per cent of the customer population. So that means less than 15 per cent of the customers will be affected. The commission has issued an order which is titled, “April Supplementary Order taking effect from today.”
