Breaking News: Fresh Update Revealed on Planned Electricity Tariff Hike

The Abuja Electricity Distribution Company (AEDC) has reaffirmed its earlier announcement that the planned increase in electricity tariffs within its franchise states will take effect from July 1, 2023. This decision has sparked reactions from various stakeholders since its initial announcement.

To allay concerns surrounding the tariff hike, the administration led by President Bola Ahmed Tinubu issued a statement during the week, assuring Nigerians that power supply across the country would improve prior to the implementation of the new electricity tariffs on July 1.

During a meeting between the Permanent Secretary of the Ministry of Power, Temitope Fashedemi, and the Special Adviser to the President on Energy, Ms Olu Verheijen, last Thursday in Abuja, the government reiterated its commitment to improving power supply.

However, in a brief statement released on Sunday night, the AEDC clarified that the tariff revision was a result of the fluctuating exchange rate of the Naira. The statement explained that under the Multi-Year Tariff Order (MYTO) 2022 guidelines, the previously set exchange rate of N441/$1 might now be revised to approximately N750/$1, which would impact the electricity tariffs for consumers.

For customers falling within Bands B and C, with daily supply hours ranging from 12 to 16, the new base tariff is expected to be N100 per kilowatt-hour (kWh). Meanwhile, customers in Bands A (with 20 hours and above) and B (16 to 20 hours) will experience relatively higher tariffs.

The statement advised 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 money before the new tariffs come into effect. Customers on post-paid (estimated) billing were also notified of an imminent significant increase in their monthly bills, starting from August.

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