DisCos to Cancel Hike in Electricity Tariff, Await FG's Approval

DisCos to Cancel Hike in Electricity Tariff, Await FG's Approval

  • Electricity Distribution Companies across the country have canceled the proposed tariff hikes
  • The DisCos disclosed that they are pending an order from the Nigerian Electricity Regulatory Commission (NERC)
  • The tariff hike, which was to take effect on July 1, caused public outrage among Nigerians, who described it as insensitive

On Monday, June 26, 2023, electricity distribution companies rescinded their decision to hike the proposed electricity tariff to start July 1, 2023, stating that the Nigerian Electricity Regulatory Commission still needs to approve the tariff increase.

Public notices from various DisCos seen on Sunday, June 25, 2023, stated that the electricity tariff would increase by 30 to 40% for a selected group of consumers on July 1, 2023.

Electricity Tariffs, Abuja DisCos
DisCos halt planned electricity tariff hike

Abuja Electricity distribution company backtracks on tariff hike

Abuja Electricity Distribution Company (AEDC) disclosed that there would be an upward review of tariffs caused by the fluctuating exchange rate.

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AEDC said:

"Under the MYTO (Multi Year Tariff Order) 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1, which will impact the tariffs associated with your electricity consumption."

But barely 24 hours after, the AEDC revealed on Monday, June 26, 2023, that there was no such hike planned and asked its customers to disregard the news as there has yet to be approval from NERC.

"Please disregard the circulating communication regarding the review of electricity tariffs. Be informed that no approval for such increments has been received. We regret any inconvenience," AEDC stated.

According to a Punch report, an official of NERC assured that the regulator had not asked DisCos to increase tariffs.

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An ex-staff of AEDC said that NERC never publishes any position or makes any official statement. He said the DisCos do such immediately after they get NERC's approval.

He said that the DisCos are calling off the hike does not mean it won't take effect.

Ikeja Electric spokesman Ayeni Akinola described the trending circular as fake and asked customers with prepaid meters to purchase energy units in bulk before the price hike becomes effective from July 1.

Nigerians kick against hike

Other DisCos disowned the planned tariff hike and await NERC's approval.

An energy expert, Justine Okon, told Legit.ng that the DisCos would have shelved the proposed hike due to public outcry.

"There is no smoke without fire. The DisCos received an order for a hike, but due to public outrage, they halted it.
"It is insensitive to hike tariffs a few weeks after the federal government removed the petrol subsidy."

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"Their excuse is not tenable. Electricity is priced in Naira and not dollars. Okon said that saying they are hiking tariffs because of fluctuating exchange rates is untenable.

FX Rates: Aso Rock affected as Abuja DisCo moves to hike tariff from July 1, blames fluctuating exchange rate

Legit.ng reported that the Abuja Electricity Distribution Company (AEDC) said it would hike tariffs due to exchange rate fluctuations in Nigeria.

AEDC is one of the 11 power distribution firms in the country and has a franchise for the distribution and sale of electricity across an area of 133,00 km2 in the Federal Capital Territory (FCT), including Niger, Kogi, and Nasarawa states.

In a statement on Sunday, June 25, 2023, the electricity company revealed that the upward hike is required because of the fluctuation of the naira in the exchange rate market.

Source: Legit.ng

Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng