AEDC Reiterates Decision Despite Public Concerns, Cites Exchange Rate Volatility as Reason for Tariff Adjustment
The Abuja Electricity Distribution Company (AEDC) has reaffirmed its intention to proceed with the planned electricity tariff hike across its franchise states, scheduled to take effect on July 1, 2023, as previously announced.
The news of the tariff increase sparked reactions from Nigerians, prompting President Bola Ahmed Tinubu to address the concerns in a statement issued last week. The statement assured the nation that power supply would be improved before any tariff adjustments.
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, it was emphasized that efforts would be made to enhance power supply prior to implementing the tariff hike.
However, in a concise statement issued on Sunday night in Abuja, the AEDC stated that the latest tariff review was prompted by the fluctuation of the naira in the exchange rate. The company indicated that this factor necessitated the adjustment in order to address the financial challenges faced in providing efficient electricity services.
“Effective July 1st 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 B and 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,” the statement said.
