Why Another Tariff Hike is Expected for Band A Customers

The cost of electricity has been going up, and it looks like it’s going to rise again for Band A customers. These customers are usually large businesses and factories that use a lot of electricity.

Several of Nigeria’s electricity distribution companies (DisCos) announced an increase in electricity tariffs for Band A customers, effective July 1.

This change was communicated through statements posted on the X handles of various DisCos.

The new tariff for Band A customers will be N209.5 per kilowatt-hour (kWh), up from the previous rate of N206.80/kWh. However, tariffs for Bands B, C, D, and E will remain unchanged.

The DisCos attributed this tariff hike to the revision of the 2024 Multi-Year Tariff Order (MYTO) for Band A customers.

New Tariff Rates Announced

In a statement on its X account, Port Harcourt Electricity Distribution Plc (PHED) informed customers of the change:

“Dear esteemed customers, Please be informed that there is an upward tariff review for our Band A feeders from N206.80/kWh to N209.5/kWh effective July 1, 2024.

The guaranteed availability of a minimum of 20 hours per day still stands. The tariff for Bands B, C, D, and E remains unchanged.”

Similarly, Kaduna Electricity Distribution Company (Kaduna Electric) announced:

“Dear esteemed customers, the management of Kaduna Electric informs the public of an upward review in the tariff of Band A feeders from N206.80/kWh to N209.5/kWh.

The review is effective July 1, 2024 and affects prepaid and postpaid customers. Kaduna Electric assures customers on its Band A feeders of the continued availability of 20-24 hours daily as stipulated in the service-based tariff regime.”

The Acting Managing Director of IBEDC, Francis Agoha, stated:

“Effective immediately, the tariff will be adjusted from N206.80/kWh to N209.50/kWh. This review has been duly approved by the Nigerian Electricity Regulatory Commission (NERC) as captured in the multi-year tariff supplementary order.”

Similar announcements were made by Ikeja Electricity (IE) and Abuja DisCo (ABEDC).

In April, the Nigerian Electricity Regulatory Commission (NERC) mandated an immediate upward review of electricity tariffs.

NERC Vice Chairman Musiliu Oseni noted that only 15% of electricity consumers would be affected by this hike, with power distribution companies allowed to increase prices to N225 per kilowatt-hour from N68. This decision faced criticism from the public.

However, on May 6, the distribution companies announced a tariff reduction, bringing the rate for Band A customers down to N206.80/kWh from N225/kWh.