The Nigerian Electricity Regulatory Commission (NERC) has revealed why electricity distribution companies (Discos) were ordered to reduce the tariff for Band A feeders.
The eleven Discos on Monday announced the reduction of the cost of electricity tariff on Band A feeders from NGN225/kWh to NGN206.8/kWh.
The management of NERC in a statement disclosed the reason for approving a reduced tariff for Band A customers.
READ ALSO: NERC approves additional 19 Band A feeders in Lagos
“Pursuant to the tariff methodology adopted by the Nigerian Electricity Regulatory Commission, a revised tariff order covering the month of May 2024 has been issued by the Commission to the eleven (11) electricity distribution companies,” the statement read.
“The Commission has considered changes in the macroeconomic parameters over the preceding month of April 2024 and especially the appreciation of exchange rates.
“Consequently, the Commission has approved a downward review of end-user tariffs for Band “A” customers from NGN225/kWh to NGN206.8/kWh.”
READ ALSO: Ikeja Electric reduces electricity tariff for Band A customers
NERC also reaffirmed its commitment to providing a balanced and effective regulatory regime serving the needs of the Nigerian Electricity Supply Industry (NESI).
NERC on Monday also approved the upgrade of an additional 19 feeders from Band B to Band A for Ikeja Electricity Distribution Company.
The management of Ikeja Electric confirmed this development on Monday in a post on its X handle.
“Premised on our demonstrated ability to consistently provide a minimum of 20 hours of daily availability 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,” IE said.
This latest approval by NERC brings to 104 the total number of feeders on Ikeja Electric from the previous 85 feeders.
