The Nigerian Electricity Regulatory Commission (NERC) issued a directive yesterday instructing electricity Distribution Companies (DisCos) to reduce the tariff for Band ‘A’ customers from N225/kWh to N206.80/kWh.

The regulatory agency cited significant changes in the macroeconomic landscape, particularly the strengthening of the naira against the dollar since April when the rate was hiked by over 230 per cent, as the basis for this adjustment.

NERC’s May 2024 Tariff Order to the DisCos, effective as of May 6, emphasizes the consideration of various factors like inflation and gas prices before any tariff adjustments are made.

In a statement titled “NERC Issues MAY 2024 Tariff Order to Electricity Distribution Companies,” the commission underscored its commitment to maintaining a balanced and effective regulatory framework.

According to the statement, “In line with the tariff methodology adopted by the Nigerian Electricity Regulatory Commission, a revised tariff order for May 2024 has been issued to the 11 electricity distribution companies. The commission has taken into account changes in macroeconomic parameters since April 2024, particularly the appreciation of exchange rates.”

Consequently, the commission has approved a reduction in end-user tariffs for Band ‘A’ customers from NGN225/kWh to NGN206.8/kWh.

The directive has been promptly adhered to by many DisCos, with Eko Disco and Kaduna Electric among those announcing the downward revision in tariffs for their Band ‘A’ feeders, effective May 6, 2024.

Eko Disco, for instance, assured its customers of a decreased tariff rate with a guaranteed minimum daily power supply of 20 hours, while Kaduna Electric emphasized the continuity of power supply on its Band A feeders.

Similarly, Ikeja Disco and Abuja Disco have also implemented the tariff reduction, ensuring continued electricity availability for Band ‘A’ customers.

With these adjustments, Band A customers can anticipate some relief in their electricity bills as DisCos respond to NERC’s directive to align tariffs with current economic conditions.