NERC Cuts Rates for Band A Customers Amid FX’s Dip

The Nigerian Electricity Regulatory Commission (NERC) has slashed electricity tariffs for Band A customers, providing welcome relief to many Nigerians. The reduction is effective immediately.

The decision follows a significant drop in the average exchange rate of the Naira to the US Dollar, which has fallen to N1400. This represents a 14 percent decrease from the previous average of N1600.

Ikeja Electric Distribution Company (IE) has dropped the cost of electricity for Band A customers. The rate has been lowered from N225 per kilowatt-hour (kWh) to N206.80/kWh, as detailed in a circular released by the company’s management on Monday.

This move means customers in Band A will pay N206.80/kWh instead of the previous N225/kWh directed by the Nigeria Electricity Regulatory Commission (NERC).

The statement also guarantees Band A customers 20 to 24 hours of electricity supply daily. Tariff rates for customers in other categories, like Bands B, C, D, and E, remain the same.

The statement read, “We wish to inform you of the revision in our tariff rates for customers in Band A, effective 6th May 2024”.

“The new rate is N206.80/kWh, down from the previous N225/kWh, with a commitment to provide 20-24 hours of electricity daily. Please note that there is no change in the tariff for customers in Bands B, C, D, and E,” it added.