July 23, 2024

 Band C customers to pay N100 per kWh, as DisCos implement 40% electricity tariff hike from July 1, 2023

 

Oredola Adeola

 

Starting from July 1, 2023, electricity customers on Band C, who receive 12 to 16 hours of electricity supply per day, should expect to pay a new base tariff of N100 per kilowatt-hour (kWh), while customers on Band A, who receive 20 hours and above of electricity supply per day, and Band B, who receive 16 to 20 hours of electricity supply per day, will experience comparatively higher tariffs.

 

 

This was revealed in the statements released by three major electricity Distribution Companies (DisCos) to customers confirming July 1, 2023, as the take-off of the proposed increase in electricity tariff by over 40 percent based on review Multi-Year Tariff Order.

 

 

The Abuja Electricity Distribution Company, in a memo sent to customers, said, “Effective July 1, 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.”

 

 

“Under 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.”

 

 

“For customers within bands 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.

 

“For 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 to take advantage of the current rates and potentially make savings before the new tariffs come into effect.

 

 

“For those on post-paid (estimated) billing, a significant increment is imminent in your monthly billing, starting from August,”

 

 

Ikeja Electricity Distribution Company (IKEDC) in a similar statement to customers also 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,” IE confirmed.

 

 

The Eko Electricity Distribution Company (EKEDC) on its part said that MYTO 2022 set the exchange rate at N441/$1, which may now be adjusted to about N750/$1.

 

 

It said, “Dear Customers, electricity tariffs are set to go higher on July 1st due to the floating exchange rate. “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.

 

 

EnergyDay’s check showed that Nigerian Electricity Regulatory Commission (NERC) on its website explained  the commission, as contained in Section 32 (d) of the Electric Power Sector Reform Act, 2005 explained that the purpose of the MYTO is to set cost-reflective tariffs which will allow the power sector to be properly funded and functional.

 

 

The commission said its duty is to ensure that the prices charged by licensees were fair to customers and sufficient to allow the licencees to finance their activities and obtain reasonable profit for efficient operations.

 

The statement said, “In pursuant to the authority given under Section 76 of the EPSR Act 2005, the commission established a methodology for determining electricity tariff in the Nigerian Electricity Supply Industry and subsequently issued a tariff order called the Multi-Year Tariff Order that sets out tariffs for the generation, transmission and distribution of electricity in Nigeria.

 

 

 

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