Why Kaduna Electric and Ibadan DisCo increased their tarrifs

• Two Electricity Distribution companies have announced tariff increases for Band A customers
• Kaduna Electric and Ibadan DisCo said the increases have been approved by the Nigerian Electricity Regulatory Commission (NERC)
• They cited the current economic conditions across the country as reasons for the increase

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Kaduna Electric has announced a tariff hike for its customers on Band A feeders from N206.80/Kwh to N209.05, effective July 1, 2024.

The company confirmed the tariff adjustment for A feeders in a statement issued by Abdulazeez Abdullahi, its head of Corporate Communications.

Two electricity distribution companies hike Band A tariffs again Credit: Bloomberg/Contributor
Source: UGC

Tariff increases affect prepaid and postpaid customers

Reports say the company said the new tariff begins on July 1, 2024, affecting prepaid and postpaid consumers.

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Also, the Ibadan Electricity Distribution Company (IBDC) increased its tariff for Band A users from N206.80/Kwh to N209.50/Kwh.

The company said the hike was approved by the Nigerian Electricity Regulatory Commission (NERC).

NERC gives consent for tariff hikes

Leadership reports that IBEDC disclosed in a statement on Wednesday, July 3, 2024, that the tariff takes effect immediately.

The company’s Managing Director, Francis Agoha, said several factors have impacted its business operations, necessitating the increase.

“These factors have significantly impacted operational costs, and the new tariff will mitigate these financial pressures while continuing to deliver high-quality electricity services,” he said.

Power minister speaks on recent tariff hikes

On Tuesday, June 2, 2024, the Minister of Power, Adebayo Adelabu, addressed the recent tariff increases, stating the Band A tariff is still cost-effective compared to self-generated energy costs in Nigeria

The Minister said that Band A feeders account for 40% of the energy consumption in the Nigerian Electricity Supply Industry (NESSI.

Electricity firm set to refund 49,000 customers

Legit.ng previously reported that Kaduna Electric has issued a list of customers who have been refunded after they were over-billed by the company as directed by the Nigerian Electricity Regulatory Commission (NERC).

The complete list of 49,000 customers was uploaded to the power distribution firm’s website on Thursday, March 14, 2024, per NERC’s directives.

According to NERC’s capping order, distribution firms must ensure that unmetered customers are not billed beyond a certain threshold.

Source: Legit.ng