Electricity Distribution Companies (DisCos), on Wednesday, approved an increase in tariffs for Band A consumers, blaming high operational costs for the decision.
This is the second hike in electricity prices this year by DisCos, placing a further strain on businesses and industries that rely heavily on power.
Francis Agoha, acting managing director, Ibadan Electricity Distribution Company Plc, said in a statement on Wednesday that the Nigerian Electricity Regulatory Commission had approved the tariff increase from N206.80/kWh to N209.50/kWh for users in the Band A category.
“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,” Agoha said.
“The adjustment is necessitated by several key economic indices, including fluctuations in the exchange rate, the current inflation rate, available generation capacity, and the cost of gas. These factors have significantly impacted operational costs, and the new tariff will mitigate these financial pressures while continuing to deliver high-quality electricity services.
“It is important to note that this adjustment affects only our Band A customers. The tariffs for Bands B, C, D, and E remain unchanged. We remain committed to providing reliable and efficient electricity services to all our customers across different bands.
“We understand that any change in tariffs can be a concern for our customers, and we assure you that this adjustment is necessary to maintain and improve the quality of our services. Our goal is to ensure that you receive the best possible value for your money,” Agoha said.
Abdulazeez Abdullahi, head of corporate communications at Kaduna Electric, also informed customers of the increase.
“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,” Abdullahi said in a statement.
It clarified, “The public should please note that the tariff for Bands B, C, D, and E remains unchanged.”
This came 33 days after the NERC had raised the electricity tariff for Band A customers from N68/kWh to N225/kWh, representing about a 240 percent increase.