- The Nigerian Electricity Regulatory Commission (NERC) issued a revised May 2024 tariff order.
- The Commission reaffirms its commitment to providing a balanced and effective regulatory regime.
The Nigerian Electricity Regulatory Commission issued a revised tariff order covering May 2024 to eleven electricity distribution companies (DisCos), following the Commission’s tariff methodology.
The Commission has considered changes in the macroeconomic parameters over the preceding month of April 2024, 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.
Furthermore, effective May 6, 2024, Band A end-user tariffs have been reviewed to NGN206.8/ kWh under the Multi-Year Tariff Order (MYTO) 2024. This is primarily driven by the relative appreciation of the Naira in the official foreign exchange window.
However, on April 3, 2024, the Nigerian Electricity Regulatory Commission (NERC) implemented electricity tariffs for band A, raising them from an average of N66/N77 per kilowatt hour to N225.
NERC stated that various factors, including the exchange rate N/$, transmission loss factor, generation cost, transmission and admin cost, wholesale gas to power prices, and benchmark gas transportation tariff, influenced its decision.
As of Monday, May 6, Ikeja Electric gave public notice that their Band A feeders’ tariff has been reviewed downward from N225/kWh to N206.80/kwh effective May 6, 2024, with a guaranteed availability of 20-24 hours daily. The DisCo also noted that the Bands B, C, D, and E tariffs remain unchanged. Also, Port Harcourt DisCo has sent out the same notice.