The Nigerian Electricity Regulatory Commission (NERC) has approved an increase in electricity tariff across the Ibadan Electricity Distribution Company (IBEDC).

This was stated in a directive issued on December 31, 2020, and signed by Sanusi Garba, NERC chairman, the new tariff will take effect from January 1.

However, increasing electricity cost for consumers under the franchise area.

IBEDC franchise area includes Oyo, Ogun, Osun, Kwara and parts of Niger, Ekiti and Kogi states.

The commission stated that the new tariff will be enforced until the issuance of another minor review order or an extraordinary tariff review order by the commission.

The NERC said some of the indices considered for the upward review include Nigeria’s inflation rate, exchange rate, US rate of inflation, available generation capacity, gas price, MDA losses and capex adjustment.

According to the order, tariff for customers in Band A (minimum supply of 20hrs daily) will increase by N6.85 to N69.18/kwh, a 10.98 percent rise.

Also from July 1, tariff for customers in Band B (minimum supply of 16hrs daily) will increase by 13.1 percent (N7.65) to N66.04/kwh from the present N58.9/kwh. For customers in Band C (minimum supply of 12hrs daily), the increase is 29.13 percent (N14.19) to N62.92/kwh).

The highest tariff increase will be for consumers in Band D (minimum supply of 8hrs daily) with 121.5 percent (N32.79) hike to N55.76/kwh from N26.97/kwh.

“Subsequent retroactive review of IBEDC’s tariffs during Minor Tariff Reviews shall be based on the IBEDC’s MYTO load allocation of the grid total energy delivered to all DisCos in line with the vesting contract executed by IBEDC and NBET”.

The commission added that “where there is a failure to deliver on committed service level by IBEDC as measured over a period of 60 days, rates payable by all customers in the affected load cluster shall be retroactively adjusted in line with the quality of service delivered over the same period, upon verification by the Commission”.