To alleviate the financial burden on its Band A customers, the Ikeja Electricity Distribution Company (IKEDC) has announced a significant reduction in electricity tariffs. Effective May 6, 2024, customers falling under Band A will see a notable decrease in their tariff rates, paying N206.80 per kilowatt-hour instead of the previously approved N225/kWh by the Nigerian Electricity Regulatory Commission (NERC).

Olufadeke Omo-Omorodion, the spokesperson for IKEDC, made this disclosure in a statement released on Monday. The reduction comes as a response to the mounting pressure from consumers, who have voiced concerns about the financial strain caused by the recent tariff hikes.

“Dear Esteemed Customers, please be informed of the downward tariff review of our Band A feeders from N225/kWh to N206.80/kWh effective 6th May 2024 with guaranteed availability of 20-24hrs supply daily,” stated the IKEDC notice.

While the tariffs for Bands B, C, D, and E remain unchanged, this move explicitly targets Band A customers, who have been grappling with the impact of the revised electricity tariffs implemented earlier this year.

The decision to slash tariffs for Band A customers comes amidst a public outcry and calls for government intervention to reverse the policy. Since releasing the supplementary Multi-Year Tariff Order, Band A consumers have been vocal about the strain on their finances, highlighting the need for relief measures.

However, concerns over the consequences of reversing the tariff hike were raised during an investigative hearing before the Senate Committee on Power. Minister of Power Adebayo Adelabu warned of a potential nationwide blackout within the next three months if the tariff hike was not implemented, underscoring the delicate balance between affordability and sustainability in the power sector.

With the downward tariff review scheduled to take effect imminently, IKEDC has assured Band A customers of a minimum of 20-hour daily power supply, signalling a step towards addressing consumer grievances while maintaining operational viability.