Electricity distribution companies, or DisCos, reiterated on Sunday their intention to proceed with the planned increase in electricity fees, which is set to take effect on July 1.
The distribution companies argued in a statement last night that rate fluctuations caused by the unification of multiple exchange rates have made it necessary to review the tariffs issued to consumers, despite mounting concerns from the Nigeria Labour Congress.
The statement read: “Under the Multi-Year Tariff Order 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.”
By comparison, the previous rate was set at N63 kilowatt-hours in January. The new tariff increases the rate by 37%.
In addition to the subsidy removal, the Nigeria Labour Congress has warned of the potential consequences of the new increase on Nigerians.
“The plan to increase electricity tariff by 40 per cent by July 1 was both insensitive and callous and reflects an organised indifference to the wellbeing of consumers, especially, the poor ones,” said Mr Joe Ajaero, the association’s president.
The DisCos have urged consumers with prepaid metres to take advantage of the notice and buy in bulk at the current rate before the new rates go into effect on Saturday.
“Please take note. Electricity units are set to jump by 30 to 40 per cent in just over a week. You are best advised to buy as many units as you can before July 1.”
