By Abiola Olawale
The Nigerian Electricity Regulatory Commission (NERC), has announced a reduction of electricity tariff for customers in the Band A classification.
NERC said this decision comes after a thorough review of the macroeconomic parameters and exchange rate appreciations.
This was disclosed in a statement signed by its management on Monday, May 6, 2024. The commission said the customers in Band A will now pay N206.8/kWh, reducing N18.20 from the initial tariff of N225/kWh earlier announced.
The NERC also urged the Electricity Distribution Companies (DISCOS) to reduce the tariff accordingly.
The NERC also 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 statement reads in part: “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.”
The New Diplomat recalls that this comes after individuals and groups, including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), had rejected the hike of electricity tariff for Band A customers.
The organised labour had also threatened to shut down their operations in the country should the federal government insist on the tariff increment.
However, despite public outcry, the Minister of Power, Adebayo Adelabu, while appearing before the Senate Committee on Power last week, warned that there would be a total blackout in the country in the next three months if the electricity tariff hike was not implemented.
