The Abuja Electricity Distribution Company (AEDC) has clarified that it has not implemented any increases in electricity tariffs, contrary to what some media reports have suggested.
Reports had circulated on various platforms claiming that AEDC announced an impending tariff increase without approval from the regulator, NERC.
Additionally, a viral message on WhatsApp and social media contributed to the confusion by stating that the company had announced a tariff change.
It is worth noting that energy experts have predicted that electricity tariffs in Nigeria may rise due to factors such as the managed float by the Central Bank of Nigeria (CBN) and the austerity measures implemented by the administration of President Bola Tinubu.
AEDC, however, made it clear that no approval has been granted for tariff increments and urged customers to disregard any notifications suggesting otherwise.
In their statement, they emphasized, “Please ignore the information circulating in the media about the review of electricity tariffs. We want to inform you that we have not received any approval for such increases, and we apologize for any inconvenience caused.”
Earlier, TechEconomy reported that electricity prices in Nigeria are expected to increase following the unification of the naira, which has led to its depreciation at the investor and exporter window. The CBN recently consolidated all segments of Nigeria’s foreign exchange market into one.
Dr. Damilola Oluwole, a Director of Energy Markets and Rates Consultants, explained that current electricity tariffs already account for the inflation rate.
The inflation rates used are based on historical average rates from the National Bureau of Statistics (NBS), with the current figure standing at approximately 22.4%. As a result, due to a slight increase in the Consumer Price Index (CPI), the impact of tariffs is expected to be minimal.
Dr. Oluwole also mentioned that according to figures provided by the CBN’s website, the exchange rate of USD/NGN 467.53 indicates a marginal increase compared to the current rate of USD/NGN 441.48.
Based on the assumption that the rate of USD/NGN 663 from the I&E window on Friday, June 16th, is used for December 2023 tariffs, and all other factors remain constant, an average increase of about 25-30% can be expected for some distribution companies (DisCos).
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