Nigerians to pay more as electricity rate goes up again

Nigerians are to pay more for electricity as distribution companies (DisCos) have announced another increase in tariffs, effective July 1.

This comes just two months after a previous increase for the same category. In April, the government raised electricity rates by a significant margin, sparking public outrage.

The government increased the rate from about N65 per kilowatt hour to N225 per kilowatt hour. Amid criticisms, the hike was slightly rolled back in May, with a reduction to N206 per kilowatt hour for customers on the top tier Band A.

The latest increase only applies to Band A customers, typically businesses and residences receiving at least 20 hours of daily power supply. Rates for Bands B, C, D, and E, which often experience less electricity availability, remain unchanged.

The New Rates

For Band A customers, the price per kilowatt-hour (kWh) will rise from N206.80 to N209.50 – a difference of N2.70.

What Distribution Companies Say

The companies claim the adjustment is necessary to maintain “improved service delivery.”

The Ikeja Electric DisCo said, “Our customers can rest assured that this development will further sustain the improved service delivery currently being delivered across all feeder bands within the Ikeja Electric network.”

The Port Harcourt Electricity Distribution Plc said: “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 1st July 2024. The guaranteed availability of a minimum of 20 hrs per day still stands.

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

Kaduna Electric said: “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 from 1st July 2024 and affects prepaid and postpaid customers. Kaduna Electric assures customers on its Band A feeders of the continued availability of 20-24 hrs daily as stipulated in the service-based tariff regime.”