…As Aba DisCo announces over 50% increase in electricity tariffs
By Seun Ibiyemi
As the new year begins, electricity consumers across Nigeria in Lagos and Ogun state are reacting to the recent transfer of many users by Ikeja Electric, Ibadan Electricity Distribution Company (IBEDC), and other electricity distribution companies (DisCos) to Band A, the tariff category associated with the highest electricity rates.
This is even as Aba Power, a prominent electricity distribution company operating in Abia State, has announced a significant increase in electricity tariffs, with rates rising by over 50 percent.
The development, which took effect at the start of January, has sparked mixed reactions from customers, with many expressing concerns over affordability and transparency.
In a statement, Ikeja Electric explained that the reclassification was part of ongoing efforts to align electricity tariffs with service levels.
According to the company, customers in Band A are entitled to a minimum of 20 hours of electricity daily, compared to lower bands with fewer guaranteed supply hours.
IBEDC echoed similar sentiments, assuring customers that the move would enhance service delivery.
“This adjustment is necessary to sustain investments in the electricity infrastructure and improve the quality of power supply,” said the company’s spokesperson.
While some customers have welcomed the promise of improved service, others have criticised the move, citing concerns about rising electricity costs amidst economic challenges.
A resident of Ikeja, Mr Gbenga Akinyemi lamented the impact on his household expenses.
“We were barely managing with the old tariff. Now, with Band A rates, it’s going to be even tougher, especially if the promised 20 hours of supply isn’t consistent,” he said.
Also speaking on the increase in tariff, a customer in Sango ota, Bimpe Adewale, under Ibadan Electric lamented that the change as “unfair,” arguing that service levels in her area do not justify the higher tariff.
“I got to know when I decided to load my my meter, I was only given 8 units for N2000 which used to be about 19 units before.
“There was no notification from IBEDC to customers informing us the that we will be migrated to Band A. All of a sudden everyone in the area was moved to Band A,” She stated
Consumer advocacy groups have also weighed in, urging the DisCos to ensure transparency in the reclassification process, calling on the Nigerian Electricity Regulatory Commission (NERC) to monitor compliance with the stipulated service hours for each band and address customer grievances promptly.
Energy expert Femi Ojo noted that while tariff adjustments are standard in electricity markets, the process must be fair and transparent.
“The DisCos must demonstrate that the reclassification is backed by improved service delivery. Otherwise, it risks eroding public trust,” he said.
Meanwhile, NERC has assured consumers that it will enforce compliance with service agreements tied to the new tariffs.
Also, Aba Power, a prominent electricity distribution company operating in Abia State, has announced a significant increase in electricity tariffs, with rates rising by over 50%.
The new tariffs took effect on January 1, 2025, following approval from the Nigerian Electricity Regulatory Commission (NERC).
The announcement was made via the company’s official X (formerly Twitter) handle, where details of the new tariff structure were outlined.
Customers categorised under Band A feeders will now pay between N219.70 and N241.45 per kilowatt-hour (kWh), a steep rise from the previous N99/kWh. Band B customers are to pay between N180.77 and N203/kWh, while Band C feeders face charges ranging from N145 to N205/kWh.
Aba Power justified the increment by citing the challenging macroeconomic environment, which has significantly affected its operational costs. In a statement accompanying the notice, the company explained:
“We also wish to inform you that we have recently received an approval order from the Nigerian Electricity Regulatory Commission (NERC) for an adjustment of electricity tariffs, effective January 1, 2025.
“This adjustment will enable us to cushion the effects of recent macroeconomic developments in Nigeria on our ability to continue to deliver a high quality of service to our customers in compliance with regulatory standards.”
The tariff hike has sparked mixed reactions among residents of Abia State. Some expressed concerns over the potential financial strain the increase may impose on households and businesses already grappling with high inflation and economic uncertainties.
On X (formerly Twitter), Amanze Emenyonu (@AmanzeEmenyonu) wrote “I hope you understand that there was a condition for this migration, that you will supply 20-24hrs in Bank A feeders. Since the first you have not been able to maintain that, as I speak to you now Aba township has been out of supply for over 4 hours now. I advise that you revert.”
Kelvin (@Kelvin_chuks_) noted ”Why will you guys increase tariff without prior notice to your customers? You’ve implemented the new tariff plan since yesterday before telling your customers today. That’s very bad.”
Aba Power’s announcement comes against the backdrop of Nigeria’s broader energy sector challenges, including rising fuel prices, foreign exchange instability, and infrastructure maintenance costs.
Industry stakeholders have long advocated for cost-reflective tariffs as a means to ensure sustainability in electricity distribution.