Home / Breaking News / Kaduna Electric Raises Band A Customers Tariff To N209.5/kWh
Kaduna Electric Raises Band A Customers Tariff To N209.5/kWh

Kaduna Electric Raises Band A Customers Tariff To N209.5/kWh

Review Overview

Summary : Tariff for Band A customers under the franchise of Kaduna Electric has been reviewed upward from N206.80/kWh to N209.5/kWh effective from July 1, 2024. The management of the DisCo announced the upward review of electricity tariffs for customers on Band A feeders via a notice to its customers posted on its website. The utility company said this followed the approval given by the regulator, Nigerian Electricity Regulatory Commission (NERC) for operators to carry out monthly market review for power supply to Band A feeders based on changes in the macroeconomic parameters, like foreign exchange rate, inflation rate and gas price. The adjustment was attributed to the rising cost of gas, which affects the cost of power generation, as well as fluctuations in foreign exchange rates. These factors have made it necessary for the utility company to review its tariff rates to address market shortfalls, ensure liquidity in the sector, and ensure adequate product pricing. Recall that in April, the Commission approved over 200 per cent hike in electricity tariff for Bank A customers from N66/per kWh to N225/kWh, citing increased foreign exchange rate from N919/$ to N1,463. However, in May, the Commission approved a reduction of electricity tariff for Band A customers from N225 per kWh to 206.8/kWh, representing a drop of 8.1 per cent. Though the Kaduna DisCo is the first to notify the public of this upward tariff review, it is expected that the review will be carried out by all the DisCos and is the outcome of July 2024 Supplementary Order of the Multi Year Tariff Order (MYTO) from NERC. Recall that NERC is now implementing a monthly tariff adjustment to reflect changes in the average exchange rate, inflation, and other pass-through indices. This is a departure from the previous MYTO structure, which set tariffs for five-year period with interim adjustments every six months. The new monthly MYTO review allows NERC to quickly adjust tariffs to reflect rising costs. Meanwhile, according to the Public Notice signed by the Head of Corporate Communication of Kaduna Electric, Abdulazeez Abdullahi, the current review, which affects both prepaid and postpaid consumers takes effect from July 1, 2024. While assuring its customers on Band A feeders of continued availability of 20-24 hour supply of electricity daily as stipulated in the Service Based Tariff regime, Kaduna Electric noted that the tariffs for Bands B, C, D, and E remained unchanged. (LEADERSHIP)

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