EKEDC Customers Challenge Band A Tariff Rise at NERC

A coalition of residential and commercial electricity consumers within the Eko Electricity Distribution Company franchise area has filed a formal tariff dispute with the Nigerian Electricity Regulatory Commission, challenging a 31 per cent increase in Band A electricity tariffs that took effect without prior public notice.

The complaint, submitted by a group of resident associations and business bodies representing tens of thousands of customers in Lagos Island, Victoria Island, and Lekki, argues that EKEDC failed to follow the legally mandated consultation process before implementing the tariff adjustment.

**The Tariff Increase**

Band A classification, which covers customers who receive a minimum of 20 hours of electricity supply per day, was subject to a significant tariff increase last month. EKEDC justified the rise as necessary to cover the higher cost of electricity purchased from generation companies following fuel price increases.

For many Band A customers — typically in higher-income residential areas and commercial districts — the increase translates to an additional ₦15,000 to ₦50,000 per month on their electricity bills, depending on consumption.

**Legal Challenge**

Consumer advocates argue that Section 76 of the Electric Power Sector Reform Act requires electricity distribution companies to conduct public consultations and give customers advance notice before major tariff revisions. They say EKEDC bypassed this process.

NERC has 30 days to formally acknowledge the complaint and schedule a hearing. If the commission finds that EKEDC violated consultation requirements, it has the power to order a reversal or suspension of the tariff increase.

**EKEDC's Defence**

In a statement, EKEDC said it followed the approved framework agreed with NERC for cost-reflective tariff adjustments and that the tariff revision was in compliance with its performance-based regulatory contract. The company declined to comment on the specific consultation procedural claims.

**Broader Context**

The dispute is part of a wider national debate about the pace and process of electricity tariff reform in Nigeria. The government has pushed distribution companies to move toward cost-reflective pricing to attract investment in the power sector, but consumer groups argue that price increases are being imposed without adequate supply improvements.