Effective July 1, 2024, Kaduna Electric has announced an upward revision in electricity tariffs for Band A customers under its franchise. The tariff has been adjusted from N206.80/kWh to N209.5/kWh.
This decision follows approval from the Nigerian Electricity Regulatory Commission (NERC) to conduct monthly market reviews based on changes in macroeconomic parameters such as foreign exchange rates, inflation rates, and gas prices.
The utility company cited the rising cost of gas, which impacts power generation expenses, and fluctuations in foreign exchange rates as reasons for the adjustment. This measure aims to address market shortfalls, ensure sector liquidity, and maintain appropriate pricing.
Previously, in April, NERC approved a significant hike of over 200% in electricity tariffs for Band A customers, from N66/kWh to N225/kWh, citing an increase in foreign exchange rates. However, in May, there was a reduction in tariffs from N225/kWh to N206.8/kWh due to adjustments in exchange rates.
This latest tariff review by Kaduna Electric marks the first notification among Distribution Companies (DisCos) and is in line with the July 2024 Supplementary Order of the Multi Year Tariff Order (MYTO) from NERC. Under this new framework, NERC conducts monthly adjustments to reflect changes in economic indices, departing from the previous five-year tariff structure with interim adjustments every six months.
Kaduna Electric assured customers on Band A feeders of continued 20-24 hour electricity supply daily as stipulated in the Service Based Tariff regime, while tariffs for Bands B, C, D, and E remain unchanged.
