Industry & Money

Electricity: FG Reduces ‘Band A’ Tariff by 8% to ₦206.8/kWh

NERC yesterday announced an eight percent reduction on electricity tariff paid by customers in Band A from N225/kWh to N206.8/kWh.

The Commission, in a statement in Abuja, said the reduction was a result of changes in macroeconomic indices in the month of April, especially the appreciation of the Naira against the Dollar in the foreign exchange market.

The statement read: “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”.

NERC had faced opposition to its decision to hike the tariff for about two million customers in Band A, which effectively removed Federal Government subsidies for customers in that band. The new tariff, however, guaranteed them a minimum of 20 hours supply of electricity.

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