CEM REPORT, ELECTRICITY| In a move aimed at providing relief to its customers, Ikeja Electric Distribution Company (IE) announced a significant reduction in electricity tariff for customers under the Band A category. This news comes after a previous increase implemented in early April.
The move also comes alongside an expansion of the Band A category, offering more residents access to more reliable power at a lower cost.
Reduced Rates and Reliable Power for Band A Customers
In a statement released on May 6, 2024, Ikeja Electric announced a decrease in electricity tariffs for customers categorized under Band A. Previously charged ₦225 per kilowatt-hour (kWh), Band A customers will now enjoy a reduced rate of ₦206.80/kWh. This translates to a slight but welcome savings on electricity bills.
“We are informing our esteemed customers about the downward tariff review for our Band A feeders,” the company stated in a circular signed by the management. “Effective May 6th, 2024, the rate for Band A customers reduces from ₦225/kWh to ₦206.80/kWh. This comes with a guaranteed availability of 20-24 hours of power supply daily.”
It’s important to note that the reduced tariff only applies to Band A customers. Rates for customers under Bands B, C, D, and E remain unchanged.
Expansion of Band A Coverage
The positive news doesn’t stop there. Ikeja Electric also announced the addition of 19 new feeders to its Band A network. These feeders, classified under the 11KV and 133KV categories, bring the total number of approved Band A feeders to 104.
“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,” the company’s statement reads, “we are pleased to announce that we have obtained approval to add 19 additional Band A feeders to our network.”
This expansion reflects Ikeja Electric’s commitment to improve service delivery and potentially qualify more customers for the lower Band A rates.
Background: NERC’s Tariff Review
For context, it’s important to understand the recent changes in electricity tariffs implemented by the Nigerian Electricity Regulatory Commission (NERC). Recall a CEM report in early April 2024, NERC announced an increase in electricity rates for Band A customers, raising the price from ₦210/kWh to ₦225/kWh. This move aimed to reflect the cost of providing a more reliable power supply.
However, NERC also acknowledged that some DisCos, including Ikeja Electric, weren’t consistently delivering the promised minimum electricity supply hours for Band A customers. As a result, NERC shifted some customers from Band A to Band B, which comes with a lower tariff but potentially less reliable power supply.
Read Also: NERC Prioritizes Domestic Power, Caps International Electricity Sales at 6%
If You Ask Me
The recent tariff reduction and network expansion by Ikeja Electric offer a glimmer of hope for Band A customers in Lagos. It signifies a potential shift towards a more reliable and cost-effective electricity supply. However, some questions remain.
Will the improved service delivery translate to a sustained reduction in tariffs?
Can Ikeja Electric further expand its Band A network to include more customers?
Only time will tell how this story unfolds. However, one thing is certain: for Band A customers under Ikeja Electric, this recent development offers a much-needed reprieve.
Ultimately, Ikeja Electric’s recent actions pave the way for a potentially more positive experience for its customers. Continued efforts to improve service delivery, maintain transparency, and potentially offer further tariff reductions will solidify Ikeja Electric’s position as a reliable and customer-centric electricity provider
