DisCos announce tariff reduction for Band A customers

Nigeria’s electricity distribution companies (DisCos), on Monday, announced the downward review of electricity tariffs for Band A customers.

The downward review takes effect from 6 May, some of the nation’s distribution companies disclosed in statements posted on their X handles on Monday.

Last month, the Nigerian Electricity Regulatory Commission (NERC) ordered the immediate upward review of electricity tariffs.

The NERC Vice Chairman, Musiliu Oseni, said only 15 per cent of the electricity consumers are affected by the hike.

Accordingly, he said, power distribution companies (DisCos) will be allowed to raise electricity prices to N225 ($0.15) per kilowatt-hour from N68.

Since the announcement, the decision has attracted criticism among Nigerians.

On 30 April, the House of Representatives asked NERC to suspend the tariff hike pending an investigation by the House.

It also resolved to set up a special committee to probe the power sector.

The resolution followed a motion of urgent public importance moved by Kama Nkem-Kanma (LP, Ebonyi) during plenary.

Mr Nkem-Kanma, in his motion, faulted the arbitrary hike in the tariff and the discriminatory nature of the policy.

The lawmaker, therefore, called for an urgent intervention by the House to prevent the extortion of Nigerians by the electricity distribution companies.

“What is more concerning are the reports indicating discrepancies in customer categorisation and widespread complaints regarding inadequate service despite increased charges.

“This situation has not just sparked national anxiety, but it also threatens regulatory certainty and investor confidence in the sector, demanding immediate attention,” the lawmaker told his colleagues at the time.

Mr Nkem-kanma alleged that there was a failure of due process in approving the tariff hike.

Downward review

Announcing the reduction on Monday, the distribution companies said customers in Band A will now pay N206.80/kwh from N225/kwh.

The companies noted that the tariff for Bands B, C, D, and E remains unchanged.

Ikeja Electric Plc in a statement said “Dear esteemed customers, 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 20-24 hrs supply daily.

“The tariff for Bands B, C, D, and E remains unchanged,” it said.

The Port Harcourt Electricity Distribution Plc (PHED) said “Dear esteemed customers, Please be informed of the downward tariff review of our Band A feeders from N225/kwh to N206.80/kwh effective 6th May 2024. The guaranteed availability of a minimum of 20 hrs per day still stands.

“The tariff for Bands B, C, D, and E remains unchanged,” it said.

The Eko Electricity Distribution Company (EKEDC) said, “Dear valued customer, Kindly be informed that our Band A feeders’ tariff rate has been reviewed downwards, effective Monday, 6th May 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 company said.

Also, the Kano electricity distribution company (KEDCO) in a statement said “Dear esteemed customers, This is to kindly inform the general public of the downward tariff review of our Band A feeders from N225/kWh to N206.80/kWh effective 6th May 2024.

“Only Band A customer categories are affected by the minor review and Band B-E Customer categories shall remain frozen at the rates payable since December 2022,” the company said.