Abuja Electricity Distribution Company (AEDC) has appealed to its customers to dismiss the news of an upcoming tariff increase, stating that they have not yet received approval for such a move. In a statement released on Monday in Abuja, the AEDC management addressed the circulating communication regarding the review of electricity tariffs and clarified that no approval has been granted at this time. They expressed regret for any inconvenience caused.
Interestingly, the AEDC had previously issued a statement announcing an impending upward review of electricity tariffs, slated to take effect from July 1. The rationale behind this decision was attributed to the fluctuating exchange rate. As per the statement, the tariff increase would be influenced by the revised exchange rate of approximately N750/1 dollar, compared to the previously set rate of N441/1 dollar under the MYTO 2022 guidelines. This revision would consequently impact the tariffs associated with customers’ electricity consumption.
The AEDC further elaborated on the new base tariff expected for customers in Bands B and C, whose supply hours range from 12 to 16 per day. For these customers, the new base tariff is projected to be N100 per Kilowatt per hour (KWh). Conversely, customers in Bands A (with 20 hours and above) and B (with 16 to 20 hours) would experience comparatively higher tariffs, as outlined in the statement.
Recognizing the concerns of its customers, the AEDC advised those with prepaid meters to consider purchasing bulk energy units before the end of June. This proactive measure would allow them to take advantage of the existing rates and make savings before the new tariffs come into effect. For customers on post-paid (estimated) billing, a significant increase in their monthly billing is imminent, beginning in August.
The Mult Year Tariff Order (MYTO) serves as the regulatory framework for electricity pricing in Nigeria. It offers a 15-year tariff path for the Nigerian electricity industry, incorporating limited “minor” reviews each year to account for changes in various parameters, including inflation and gas prices. Additionally, “major” reviews are conducted every five years, involving stakeholders in the comprehensive assessment of all inputs.
The AEDC remains committed to delivering reliable electricity services to its customers while ensuring transparency in tariff adjustments. Customers are urged to stay updated with official communications from the AEDC regarding any developments in the tariff structure.
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