DisCos to increase electricity tariff by 40%  from July 1

From Isaac Anumihe, Abuja

Electricity distribution companies have agreed to increased their tariff by 40  per cent from July 1, 2023, citing high exchange rate and inflation. In a statement, both Abuja Electricity Distribution Company (AEDC) and Ikeja Distribution Company (IKDC) said that for post-paid customers,  a significant increment is imminent in their  monthly billing, starting from August.

The  DisCos  said that Multi-Year Tariff Order (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) and  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” the statement, noted.

Meanwhile a few hours later, the Abuja Electricity Distribution Company (AEDC) denied the planned tariff increase that was supposed to be implemented from July 1, 2023.

On Sunday, the DisCo released a statement indicating that the revision was expected to have an impact on the tariffs associated with electricity consumption.

But in a tweet on Monday, the Company urged customers to disregard the previous communication, stating that it had no approval for such an increase.

The tweet read: “Dear Esteemed Customers, Please disregard the communication circulating in the media regarding the review of electricity tariffs. Be informed that no approval for such increments has been received. We regret any inconvenience.”

Meanwhile, the President of the Nigeria Consumer Protection Network, Kunle Olubiyo, stressed the need for the Federal Government to divest its 40% stake in the Power Sector, thereby breaking the monopoly of the 11 Electricity Distribution Companies.