NERC's Decision to Lower Electricity Tariffs for Band A Customers – What You Need to Know

NERC has confirmed approval for Electricity Distribution Companies (Discos) to reduce tariffs for Band A customers. The statement was released on Monday via NERC’s website.

The Commission granted approval for the reduction in electricity tariffs for affected customers due to the Naira’s appreciation in the foreign exchange market. As reported earlier by Plateau News, the eleven Discos reduced tariffs for Band A customers from 225/kWh to 206.8/kWh, representing an approximately 8.1% reduction.

According to the NERC statement, “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.”