No more N206.80/kWh: DisCos Hikes Electricity Tariff Again, Explains Reasons for New Price
- The electricity distribution firms, approved an increase in rates for Band A customers from N206.80/kWh to N209.50/kWh
- DisCos have raised electricity tariffs twice already this year, burdening businesses and other energy-dependent industries even more
- The most populous nation in Africa has seen years of delayed economic growth due to persistent issues with electricity
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Electricity distribution companies, or DisCos, have authorised a rate hike for Band A customers on Wednesday. They claim the decision was made due to the significant operational costs.
Source: Getty Images
This is the second increase in electricity rates by DisCos this year, further taxing companies and sectors of the economy that depend on energy.
This information was disclosed in a statement released by Francis Agoha, acting managing director of Ibadan Electricity Distribution Company Plc and seen by BusinessDay on Wednesday.
He said that the Nigerian Electricity Regulatory Commission has approved the tariff increase for users in the Band A category, which will bring the rate from N206.80/kWh to N209.50/kWh.
He said,
“Effective immediately, the tariff will be adjusted from N206.80/kWh to N209.50/kWh. This review has been duly approved by the Nigerian Electricity Regulatory Commission (NERC) as captured in the multi-year tariff supplementary order,” Agoha said.
“The adjustment is necessitated by several key economic indices, including fluctuations in the exchange rate, the current inflation rate, available generation capacity, and the cost of gas. These factors have significantly impacted operational costs, and the new tariff will mitigate these financial pressures while continuing to deliver high-quality electricity services.
“It is important to note that this adjustment affects only our Band A customers. The tariffs for Bands B, C, D, and E remain unchanged. We remain committed to providing reliable and efficient electricity services to all our customers across different bands.
The hike was also communicated to customers by Kaduna Electric's head of corporate communications, Abdulazeez Abdullahi.
“Dear esteemed customers, the Management of Kaduna Electric informs the public of an upward review in the tariff of Band A feeders from N206.80/kWh to N209.5/kWh,” Abdullahi said in a statement.
It clarified,
“The public should please note that the tariff for Bands B, C, D, and E remains unchanged.”
Nigeria last changed the Band A consumers' electricity rates from N225/kWh to N206.8/kWh. This occurred 33 days after the NERC increased Band A customers' electricity rates from N68/kWh to N225/kWh, or almost a 240% increase.
The most populous country in Africa has experienced years of slow growth as a result of ongoing electricity problems.
Numerous issues, such as a deteriorating grid, gas shortages, high debt, and vandalism, affect the country's power industry. Nigeria produces only about 25% of its installed capacity of 12,500 megawatts, therefore many of its citizens are dependent on pricey diesel generators.
According to research, consumers—including manufacturers and public and private institutions—are complaining that their monthly electricity bills are astronomically high, which is why tariffs have recently increased.
The majority of public tertiary institutions in Nigeria are on the edge of bankruptcy as a result of the energy pricing hike, according to Lilian Salami, vice chancellor of the University of Benin (UNIBEN), who also recently bemoaned the impact on the country's universities.
She said,
“Right now, what we are going through is an electricity problem. Before now, the University of Benin could boast for at least 20 to 22 hours of light and that could run for weeks without a blink.
“But as soon as the tariff was up 300 per cent, we went from N80 million, which was very difficult for us to pay per month, to N280 million per month. That even came when the students were on vacation.”
FG issues new deadline for DisCos to upgrade
Legit.ng reported that the Nigerian Electricity Regulatory Commission (NERC) has warned electricity distribution companies (DisCos) against defaulting on the July 31 deadline for pre-paid meter upgrade.
The commission disclosed this in a statement during the second Nigerian Electricity Supply Industry (NESI) stakeholders meeting for 2024.
A previous order by NERCE mandated DisCos to upgrade existing meters to a new specification so that they could continue to accept tokens.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
