Business

NERC issues May downward tariff review order to DisCos

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THE Nigerian Electricity Regulatory Commission (NERC), has ordered the 11 Electricity Distribution Companies (DisCos) to reduce Band “A” customers tariff from N225/kWh to N206.8/kWh for the month of May 2024.

The commission, on Monday, disclosed this  in a press release which it titled: “NERC Issue May 2024 Tariff Order to Electricity Distribution Companies.”

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.”

According to NERC, it has reviewed changes in the macroeconomic parameters over the preceding month of April 2024 as a result of appreciation in the exchange rates which has culminated in the reduction of the B and A customers’ tariff from N225/kWh to N206.8kWh.

“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 however pledged its commitment to providing a balanced and effective regulatory regime serving the needs of the Nigerian Electricity Supply Industry.

As a result of the order, Ikeja Electricity Distribution Company; Kaduna Electricity Distribution Company; and Abuja Electricity Distribution Company have all announced the downward adjustment to their customers in the affected band feeders.

Nigerian Tribune recall that there was an outcry over the increase in electricity tariff by NERC in April, which was rejected by Nigerians, civil societies, labour unions and others.

NERC through its vice chairman, MusiliuOseni, had on April 3, ordered the immediate upward review of electricity tariffs for customers across all bands.

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