• Wednesday, May 29, 2024
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BusinessDay

NERC lowers tariff for Band A customers as exchange rate drops

FG bows to labour union, lowers tariff for Band A customers

In a move that will bring relief to many Nigerians, the Nigerian Electricity Regulatory Commission (NERC) has announced a reduction in electricity tariffs for Band A customers, effective immediately.

This decision comes as the average exchange rate of the Naira to the US Dollar has fallen to N1400, a 14 percent decrease from the average of N1600.

…N206.80/kWh effective from April 6

On Monday, Ikeja Electric Distribution Company (IE) announced a reduction in its electricity tariff for customers categorised under Band A, lowering the rate from N225 per kilowatt-hour (kWh) to N206.80/kWh.

This adjustment, detailed in a circular issued by the company’s management on Monday, indicates that customers in this band will now pay N206.80/kWh instead of the previously stipulated N225/kWh as directed by NERC.

The statement also assures customers in Band A of a guaranteed electricity supply ranging from 20 to 24 hours daily. Meanwhile, the tariff rates for customers in other categories, including Bands B, C, D, and E, remain unchanged.

The statement read, “We wish to inform you of the revision in our tariff rates for customers in Band A, effective 6th May 2024”.

“The new rate is N206.80/kWh, down from the previous N225/kWh, with a commitment to provide 20-24 hours of electricity daily. Please note that there is no change in the tariff for customers in Bands B, C, D, and E,” it added.