Kogi Electricity Regulator Unveils Plan for Fair, Cost-reflective Tariff

The Kogi State Electricity Regulatory Commission (KERC) has reaffirmed its commitment to introducing a fair, transparent and cost-reflective electricity tariff as part of efforts to deliver reliable and affordable power supply across the state.

The assurance was given on Thursday during the KERC Issue-Day Conference on the Kogi State Electricity Tariff Setting Process held in Lokoja.

The forum was convened to validate tariff assumptions, examine key cost drivers, review service obligations, assess investment requirements, strengthen consumer protection measures and obtain stakeholder input before the Commission issues its final tariff determination.

Speaking at the event, the Commissioner for Rural and Energy Development,  Abdulmutalib Mohamed, commended KERC for its efforts in building a viable electricity market while safeguarding consumer interests since its establishment.

He described the Multi-Year Tariff Order (MYTO) process as essential to striking a balance between investor confidence, affordability and improved service delivery, assuring that the Kogi State government would continue to support policies that guarantee reliable electricity and fair pricing for all communities.

In his opening remarks, the Chairman and Chief Executive Officer of KERC, Engr. Ibrahim Sunday Abdulwaaris, said the Commission’s mandate is to protect consumers while ensuring the financial viability of the state’s electricity distribution company to attract sustainable investments.

“Any tariff we approve must be fair, cost-reflective, transparent and based on verifiable data. That is the law and that is our commitment,” he said.

He noted that electricity tariffs represent more than customer bills, describing them as “the contract between the service provider and the people of Kogi State,” because they determine investments in transformers, local meter production through PEEMADI, industrial growth and household affordability.

Engr. Abdulwaaris clarified that no final decision had been reached, adding that KERC would review submissions from stakeholders at the conference as well as written memoranda to be received on or before July 9, 2026, before issuing the final Tariff Order.

“Our goal is one: reliable, affordable electricity for every Kogi citizen,” he stated.

The Chief Economic Adviser to the Kogi State Government, Hon. Aliyu Salami, urged KERC to position the state as an attractive destination for electricity investors, noting that the outcome of the tariff-setting process would significantly influence investor confidence and capital inflow into the sector.

Also speaking, the Commissioner for Market, Competition and Rate, Engr. Abdussalam Yusuf, PhD, explained that tariff setting is the regulatory process for determining electricity charges payable by consumers.

Quoting the popular saying, “Money is a coward; it will not go where it cannot return,” he stressed the need for tariffs that provide adequate returns for investors while remaining affordable for consumers.

He disclosed that KERC plans to abolish the existing Band A, B and C classifications, replacing them with a uniform tariff structure under which all customers would receive the same hours of electricity supply and pay the same tariff rate.

According to him, public schools and hospitals would enjoy slightly lower tariffs to cushion the impact on vulnerable and low-income users.

Engr. Yusuf also charged Kogi Electricity Distribution Limited (KEDL) to achieve 90 per cent customer metering by 2030 in order to curb electricity theft and reduce Aggregate Technical, Commercial and Collection (ATC&C) losses from the current 42 per cent to 25 per cent or below.

The Commissioner for Engineering, Performance and Monitoring, Engr. Michael Meliga, said while quality electricity comes at a cost, it can still be made affordable through an efficient tariff framework.

He urged KEDL to eliminate electricity-related fatalities and equip its personnel with the tools required to promptly detect and rectify faults.

“We will do our part, and KEDL should also do its part to ensure a sustainable electricity market that is safe, affordable and reliable,” he said.

Joining the conference virtually, the Group Managing Director of Abuja Electricity Distribution Company (AEDC), Engr. Chijoke Okwuokenye, expressed satisfaction with the progress made in Kogi’s electricity sector.

He commended KERC for its leadership and pledged continued collaboration to improve tariff design and service delivery.

Engr. Okwuokenye also highlighted Nigeria’s infrastructure deficit, urging regulators to factor Gross Replacement Value, generation costs and investment gestation periods into the tariff model and key performance indicators.

Other contributors included the Acting Managing Director of KEDL, Mr. Desmond Eboh; Chairman of the Light Up Committee, Mr. Iliyasu Zakari; representatives of the Federal University Lokoja, Prince Abubakar University, Anyigba, College of Health Sciences and Technology, Idah, the Kogi State House of Assembly, Nigeria Immigration Service, NDLEA, Ajaokuta Constituency and other participants who joined virtually.