Ikeja Disco slashes electricity tariff for Band A customers

The Ikeja Electricity Distribution Company (IKEDC) announced a surprising reduction in tariff for its Band A customers on Monday. This comes weeks after power companies in the country introduced new rates as approved by the Nigerian Electricity Regulatory Commission (NERC).

Under the new plan, Band A customers will now pay N206.80 per kilowatt-hour (kWh) down from the N225/kWh approved by NERC. Additionally, IKEDC guarantees a minimum of 20 hours of daily power supply for these customers.

The price reduction only applies to Band A customers. The tariffs for Bands B, C, D, and E remain unchanged.

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The news comes after public outcry over the recent increase in electricity tariffs, especially considering the lack of consistent power supply. On April 3rd, NERC revised the Band A tariff from N68/kWh to N225/kWh, sparking complaints from consumers who felt the hike was unreasonable without consistent electricity.

IKEDC’s announcement on X, formerly Twitter, did not specify the reason behind the tariff reduction for Band A customers.

“Dear Esteemed Customers, please be informed of the downward tariff review of our Band A feeders from N225/kWh to N206.80/kWh effective 6th May 2024 with guaranteed availability of 20-24hrs supply daily,” the company said.

“The tariff for Bands B, C, D, and E remains unchanged.”

The Nigerian government previously argued that the tariff increase was necessary to reduce subsidies and bolster the nation’s economy.