Citing Strengthening Naira, NERC Directs Discos to Slash Tariffs for Premium Customers

•Electricity distributors begin compliance

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

The Nigerian Electricity Regulatory Commission (NERC) yesterday, directed electricity Distribution Companies (Discos) to reduce tariff for Band ‘A’ customers from N225/kWh to N206.80/kWh.

The regulatory agency for the power sector said the move became imperative because of the obvious changes in the macroeconomic environment, especially the strengthening of the naira against the dollar, compared to April, when the rate was hiked by over 230 per cent.

NERC’s directive was contained in the commission’s May 2024 Tariff Order to the Discos, explaining that the tariff took effect from yesterday (May 6).

Aside the foreign exchange rate, NERC usually takes into consideration indicators like inflation, gas prices, among others, before adjusting tariffs paid by electricity customers.

In a statement tagged: “NERC Issues MAY 2024 Tariff Order to Electricity Distribution Companies,” the commission said it was committed to providing a balanced and effective regulatory regime.

“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 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 power sector regulator stated.

THISDAY observed that many of the Discos had already begun to comply with the NERC’s directive as of yesterday.

Following the directive, Eko Disco, for instance, informed its customers that the tariff had been reviewed downwards for premium customers.

“Kindly be informed that our Band ‘A’ feeders tariff rate has been reviewed downwards, effective Monday, May 6, 2024, from N225/kWh to N206.80/kWh with a guaranteed minimum daily power supply of 20 hours. Do note that the tariff rate for the other bands remains unchanged,” the Lagos-based company stated.

The management of Kaduna Electric also announced a downward review of the tariff of its Band ‘A’ feeders from N225/kWh to N206.80/kWh.

A public notice signed by its Head, Corporate Communication, Abdulazeez Abdullahi informed that the review was effective May 6, 2024 and affects both prepaid and post-paid customers.

“The management of Kaduna Electric is pleased to inform the public of a downward review in the tariff of our Band A feeders from N225/kWh to N206.80/kWh.

“The review is effective from May 6, 2024 and affects both prepaid and post-paid customers. Kaduna Electric assures customers on its Band A feeders of continued availability of 20-24hrs supply daily as stipulated in the Service Based Tariff regime. The public should please note that the tariff for Bands B, C, D, and E remains unchanged,” it stated.

Besides, Ikeja Disco announced the reduction of its electricity tariff for customers in compliance with the NERC’s directive.

In a circular signed by the management of the company, it said the customers will now pay the newly approved rate ordered by the commission.

“Dear esteemed customers, please be informed of the downward tariff review of our Band A feeders from N225/kwh to N206.80/kwh effective May 6, 2024 with guaranteed availability of 20-24hrs supply daily. The tariff for Bands B, C, D, and E remains unchanged,” it added.

 Among others, Abuja Disco also announced a reduction in tariff, assuring its Band ‘A’ customers of continued availability of electricity supply for 20-24 hours.

“We are pleased to share with you the revised tariff for our Band A feeders, which will decrease from N225/kWh to N206.80/kWh effective today, May 6, 2024.

“We assure customers on our Band A feeders of continued availability of electricity supply for 20-24 hours daily. Please note that the tariffs for Bands B, C, D, and E remain unaffected,” the Disco stated.