Despite protests by organised Labour and a host of Nigerians, electricity distribution companies (DISCos) appear determined to go ahead with their plan to hike
electricity tariffs by 40 percent come July 1,
Some of the DISCOs have already issued public statements to inform customers in their franchise area of the planned hike.
Immediately the proposed increment in electricity rates were announced last week, the organised Labour condemned it, describing it reckless, callous and insensitive.
The Nigeria Labour Congress (NLC), through its President, Joe Ajaero, said raising electricity tariffs shortly after the recent increment of the retail price of premium motor spirit (PMS), popularly called petrol, by 195 percent would worsen the suffering of the average Nigerians, especially workers who are yet to recover from the impact of escalating prices and inflation.
But the apex electricity sector regulatory authority, the Nigerian Electricity Regulatory Commission (NERC), has insisted that the proposed tariffs adjustment was already scheduled in line with its biennial minor Multi-Year Tariff Order (MYTO) review,.
Under the MYTO, NERC mandates the DISCos to carry out minor tariff reviews twice every year, and a major review after every five years taking into consideration the prevailing socio-economic conditions in the economy relating to such elements as inflation and the exchange rate of the Naira.
So far, ๐๐ค๐จ ๐๐ฅ๐๐๐ญ๐ซ๐ข๐๐ข๐ญ๐ฒ ๐๐ข๐ฌ๐ญ๐ซ๐ข๐๐ฎ๐ญ๐ข๐จ๐ง ๐๐จ๐ฆ๐ฉ๐๐ง๐ฒ (๐๐๐๐), Ikeja Electricity Distribution Company (IEDC) and Abuja Electricity Distribution Company (AEDC) have informed their customers about the impending adjustment in the tariffs effective July 1.
“Dear Customers, electricity tariffs are set to go higher on July 1st due to the floating exchange rate,” announced Eko DISCO in a public statement.
“MYTO 2022 set the exchange rate at N441/$1, which may now be adjusted to about N750/$1.
“We may be looking at a base tariff of N100 per kWh for Band C (12 – 16 supply hours per day).
“Bands A (20 hours and above) & B (16 – 20 hours) will be much higher”, the company added.
For customers with prepaid meters, the company advice them to buy energy units in bulk for their homes or offices before the deadline to make some savings before the new rates come into effect.
For those on post-paid (estimated) billing, the company warned that a significant increment was imminent in their monthly billing, starting from August.
The AEDC statement on the issue read: โEffective July 1st 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.โ
โUnder the MYTO 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1 which will have an impact on the tariffs associated with your electricity consumption.โ
โFor customers within band B and C, with supply hours ranging from 12 to 16 per day, the new base tariff is expected to be N100 per kWh while Bands A with (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs.
โFor customers, with a prepaid meter, we encourage you to consider purchasing bulk energy units before the end of this month as this will allow you take advantage of the current rates and potentially make savings before the new tariffs come into effect.
โFor those on post-paid (estimated) billing, a significant increment is imminent in your monthly billing, starting from August.โ
IEDC iin its statement issued on Sunday said: “Dear Customers, electricity tariffs are set to go higher on July 1st due to the floating exchange rate.
“MYTO 2022 set the exchange rate at N441/$1, which may now be adjusted to about N750/$1.
“We may be looking at a base tariff of N100 per kWh for Band C (12 – 16 supply hours per day).
“Bands A (20 hours and above) & B (16 – 20 hours) will be much higher.
“If you have a prepaid meter, buying bulk energy units for your home or office before the end of the month may help you make some savings before you have to buy at the new rate.
“For those on post-paid (estimated) billing, a significant increment is imminent in your monthly billing, starting from August.”
Please take note.
“Electricity units are set to jump by 30-40% in just over a week. You are best advised to buy as many units as you can before July 1.”
Other DISCos have communicated the same information to the customers directly either during their consumer consultative meetings or through channels.ย
