Electricity Distribution Companies (DisCos) have issued notices to customers informing them of an upcoming increase in electricity tariffs starting from July 1, 2023.
This decision is a result of the Naira-to-dollar exchange rate going up.
The Abuja Electricity Distribution Company (AEDC), Eko Electricity Distribution Company (EKDC), and Ikeja Electricity Distribution Company (Ikeja Electric) have individually advised customers to purchase bulk electricity in order to mitigate the expected tariff hike.
According to the AEDC, they will be implementing an upward review of electricity tariffs influenced by the fluctuating exchange rate.
Under the MYTO 2022 guidelines, the previously set exchange rate of N441/$1 might be revised to approximately N750/$1, which will impact the tariffs associated with customers’ electricity consumption.
Customers within Bands B and C, receiving 12 to 16 supply hours per day, can expect a new base tariff of N100 per kilowatt-hour (kWh). Bands A (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs.
The AEDC specifically encouraged customers with prepaid meters to consider purchasing bulk energy units before the end of the month to take advantage of the current rates and potentially save before the new tariffs take effect.
Customers on post-paid (estimated) billing can anticipate a significant increase in their monthly bills starting from August.
Similarly, EKDC suggested that a base tariff of N100 per kWh is likely for Band C customers (12-16 supply hours per day), while Bands A (20 hours and above) and B (16-20 hours) will face higher tariffs.
Ikeja Electric revealed that electricity units are expected to increase by 30-40% in just over a week. They advised customers to buy as many units as possible before July 1.
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