The federal government has reduced the electricity rate for top tier users, weeks after it approved a huge 231% price increase.
The Nigerian Electricity Regulatory Commission announced Monday that effective today Band A customers will pay N206.8/kWh.
That is 8.4% lower than N225/kWh it set on April 3, an increase the government said was aimed at turning the perennially erratic sector around with enhanced supply and minimized grid collapse.
The regulator said the reduction was done because the naira had gained value on the official market.
“Effective from May 6, 2024, Band A end-user tariffs have been reviewed to NGN206.8/ kWh under MYTO 2024,” it said on X, formerly Twitter.
“This is largely driven by the relative appreciation of the Naira in the official foreign exchange window.”
More customers join Band A
The announcement came just hours after the Ikeja Electricity Distribution Company (IKEDC) announced a similar reduction for the customer in Lagos.
The IKEDC guaranteed a minimum of 20 hours of daily power supply for its top tier customers.
The price reduction only applies to Band A customers. The tariffs for Bands B, C, D, and E remain unchanged.
The IKEDC, however, said it added more customers to Band A after demonstrating the ability to consistently provide electricity for a minimum of 20 hours daily during a performance evaluation period monitored by the regulator.
“We are pleased to announce that we have obtained approval to add 19 additional Band A feeders to our network,” the company said.
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