NERC increases Band A customers’ tariff from N206.80/kWh to N209.50/kWh
… third adjustment in four months
… Ikeja DisCo, IBEDC, Kaduna confirm adjustments
Oredola Adeola
The Nigerian Electricity Regulatory Commission (NERC) has approved another electricity tariff adjustment, the third in less than four months, raising the rate for Band A customers from N206.80/kWh to N209.50/kWh effective July 1, 2024.
This update has been confirmed by several electricity Distribution Companies (DisCos), including the Ibadan Electricity Distribution Company Plc (IBEDC) and Kaduna Electric.
Engr. Francis Agoha, the Acting Managing Director of IBEDC, emphasized that the adjustment is driven by critical economic indicators such as fluctuations in the exchange rate, the current inflation rate, generation capacity, and gas costs.
“These factors have significantly impacted operational costs, and the new tariff will help mitigate these financial pressures while continuing to deliver high-quality electricity services,” he stated.
“We understand that any change in tariffs can be a concern for our customers.
“This adjustment is necessary to maintain and improve the quality of our services,” said Engr. Agoha.
Kingsley Okotie, Head, Corporate Communication, Ikeja Electric, also confirmed that the tariff review will impact both prepaid and postpaid customers.
He further assured that Band A feeder customers will continue to enjoy a guaranteed 20-24 hour daily supply, in line with the Service Based Tariff regime.
Abdulazeez Abdullahi, Head of Corporate Communication at Kaduna Electric, echoed this sentiment in a separate statement confirming the development.
He confirmed that the tariff review, effective from July 1, 2024, impacts both prepaid and postpaid customers.
Abdullahi also assured Band A feeder customers of continued 20–24-hour daily supply as per the Service Based Tariff regime and noted that tariffs for Bands B, C, D, and E remain unchanged.
Both companies clarified that the adjustment applies exclusively to Band A customers, with tariffs for Bands B, C, D, and E remaining unchanged.
Advisors Report gathered that this latest tariff hike underscores the ongoing challenges within Nigeria’s electricity sector, aiming to balance financial sustainability and service delivery.