In a significant move aimed at easing the burden on consumers, the Nigerian Electricity Regulatory Commission (NERC) has announced an eight percent reduction in electricity tariffs for customers in Band A. The reduction sees the tariff drop from N225/kWh to N206.8/kWh, marking a positive shift for consumers in this category.
The Commission, headquartered in Abuja, attributed this reduction to changes in macroeconomic indices observed in April, particularly the appreciation of the Naira against the Dollar in the foreign exchange market. This adjustment reflects NERC’s commitment to maintaining a regulatory framework that responds to economic dynamics while ensuring fair pricing for electricity consumers.
In a statement released by the Commission, it outlined its adherence to the tariff methodology and the issuance of a revised tariff order covering the month of May 2024 to the eleven electricity distribution companies. The downward review in tariffs for Band A customers underscores NERC’s responsiveness to prevailing economic conditions, ultimately aiming to alleviate financial strain on consumers.
NERC’s decision to revise the tariff comes amidst opposition to its earlier decision to hike tariffs for approximately two million customers in Band A, effectively removing Federal Government subsidies for this category. However, the new tariff structure assures customers in Band A of a minimum of 20 hours of electricity supply, ensuring that essential services remain accessible despite tariff adjustments. The Commission reaffirms its dedication to providing a balanced and effective regulatory regime that serves the evolving needs of the Nigerian Electricity Supply Industry.
