DisCos to increase electricity tariff over fluctuating exchange rate from July 1
Electricity Distribution Companies (DisCos) in Nigeria have announced an upcoming tariff increase set to take effect from July 1, 2023.
The distribution companies said the action is a response to the fluctuating exchange rates the country is witnessing.
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They noted that the tariff hike to consumers has become imminent in order to remain in business.
Fluctuating Exchange Rates Influence
The DisCos have attributed the tariff review to the volatility of the naira in the exchange rate market. In their statements to customers, they highlighted that the fluctuating exchange rate has necessitated adjustments to the electricity tariffs.
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According to the Multi-Year Tariff Order (MYTO) 2022 guidelines, the previous exchange rate of N441/$1 may now be revised to approximately N750/$1. This change in the exchange rate will have a direct impact on the tariffs associated with electricity consumption.
Tariff Structure and Implications
The revised tariff structure will affect customers differently based on their supply hours and billing types.
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Customers falling under Bands B and C, with supply hours ranging from 12 to 16 per day, will experience a new base tariff of N100 per kilowatt-hour (kWh).
However, customers in Bands A (20 hours and above) and B (16 to 20 hours) can expect comparatively higher tariffs. The DisCos have 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 make savings before the new tariffs come into effect.
Customers on post-paid (estimated) billing will witness a significant increment in their monthly bills starting from August.
Abuja DisCo issued a statement advising customers about the forthcoming tariff increase, which will be effective from July 1, 2023.
The company highlighted the impact of the fluctuating exchange rate on electricity tariffs and the revised base tariff of N100 per kWh for customers falling under Bands B and C.
Furthermore, Ikeja Electricity Distribution Company (IKEDC) alerted its customers to the tariff increase, emphasizing the floating exchange rate and the possibility of the exchange rate being adjusted to about N750/$1. IKEDC advised customers with prepaid meters to purchase bulk energy units before the end of the month to save costs before the new rate comes into effect. Customers on post-paid billing were also informed of an imminent significant increment in their monthly billing, starting from August. Similarly, Eko Electricity Distribution Company (EKEDC) notified its customers about the upcoming tariff increase and provided recommendations for prepaid and post-paid customers.
Electricity Distribution Companies in Nigeria have issued statements alerting customers about an impending tariff increase scheduled for July 1, 2023. The fluctuating exchange rates have necessitated adjustments to the electricity tariffs, as per the Multi-Year Tariff Order (MYTO) 2022 guidelines. The revised tariff structure will impact customers differently based on their supply hours and billing types. To mitigate the impact of the tariff increase, DisCos have advised customers with prepaid meters to purchase bulk energy units before the new rates take effect. Additionally, post-paid customers have been warned about a significant increment in their monthly bills starting from August. Stay informed to make informed decisions regarding your electricity consumption and expenses.
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