Ikeja Electricity Distribution Company (DisCo) has announced a reduction in electricity tariff for customers under Band A classification.
In a circular issued on Monday, it was stated that effective May 6, 2024, the tariff will decrease to N206.80 per kilowatt-hour (kwh).
The move comes after the Nigerian Electricity Regulatory Commission (NERC) approved an increase in tariff for Band A customers to N225 per kwh on April 3, from the previous rate of N66, a decision that sparked controversy as Band A customers typically receive 20 hours of electricity supply daily.
Ikeja DisCo also assured customers of guaranteed availability of 20-24 hours supply daily under the new regime.
“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 circular stated.
However, the DisCo clarified that tariffs for bands B, C, D, and E remain unchanged despite the adjustment for Band A.
NERC, commenting on the approved tariff increase, highlighted its potential impact on reducing subsidies for the 2024 fiscal year by approximately N1.14 trillion.
“With the newly approved tariffs, subsidies for the 2024 fiscal year are expected to reduce by about NGN1.14 trillion in furtherance of the federal government’s realignment of the subsidy regime,” NERC stated.
The vice-chairman of the commission, Musliu Oseni expressed optimism that the new tariff would bolster the nation’s economy, signaling potential benefits amidst ongoing debates over electricity pricing and subsidy policies.
Chioma Kalu
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