By Afolabi Samuel Odunayo
Ibadan Electricity Distribution Company Plc (IBEDC) has recently made public its plan to increase Band A electricity tariff.
The Nigerian Electricity Regulatory Commission has approved the rate hike for users in the category, taking effect immediately, from N206.80/kWh to N209.50/kWh, according to the company’s Acting Managing Director, Francis Agoha.
Agoha on Wednesday signed a notification to the public stating that the rates for Bands B, C, D, and E are unaltered.
In a statement released by Agoha, he explained:
“Effective immediately, the tariff will be adjusted from N206.80/kWh to N209.50/kWh. This review has been duly approved by the Nigerian Electricity Regulatory Commission (NERC) as captured in the multi-year tariff supplementary order.
“The adjustment is necessitated by several key economic indices, including fluctuations in the exchange rate, the current inflation rate, available generation capacity, and the cost of gas. These factors have significantly impacted operational costs, and the new tariff will mitigate these financial pressures while continuing to deliver high-quality electricity services.
“It is important to note that this adjustment affects only our Band A customers. The tariffs for Bands B, C, D, and E remain unchanged. We remain committed to providing reliable and efficient electricity services to all our customers across different bands.
“We understand that any change in tariffs can be a concern for our customers, and we assure you that this adjustment is necessary to maintain and improve the quality of our services. Our goal is to ensure that you receive the best possible value for your money.”
Recall that the first electricity tariff increase in Nigeria in 2024 occurred in January. This hike was said to be part of ongoing efforts to adjust tariffs to reflect the cost of electricity production and distribution.
The Minister of Power, Adebayo Adelabu, had clarified that major objections against the electricity tariff hike for Band A customers were “coming from individuals who were previously not fulfilling their electricity payment obligations.”
