“N100 per Unit”: Nigerians Make Last-Minute Bulk Electricity Purchase Ahead of 40% Tariff Increase

• Nigerian electricity consumers, to beat the expected new price in tariff from July, are making last-minute bulk purchase
• It is expected that from Saturday, July 1, new electricity tariff plans will be implemented by DisCos
• The Federal Government of Nigeria recently announced plans to remove all forms of subsidy in the electricity and energy sector

Ahead of the planned electricity tariff increase, many Nigerian households have decided to purchase units in bulk at the current rate.

The decision, they hope, would help them save costs when the new electricity tariff is implemented.

Legit.ng earlier reported that the federal government plans to increase electricity tariffs by 40% starting Saturday, July 1, 2023.

DisCos announce changes

Although there is no official confirmation yet on the changes, reports emerged recently that electricity companies have already started informing their customers about tariff changes.

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ThisDay reported the companies explained that the fluctuating exchange rate influences the changes.

For instance, a message from Abuja Electricity Distribution Company(AEDC) to its customers, as reported by BusinessDay, reads:

"Effective July 1st, 2023, please be informed that an upward review of the electricity tariff will be 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 impact the tariffs associated with your electricity consumption."

Following public dissatisfaction, AEDC was forced to retract its notice and apologise to Nigerians.

However, despite the denial and apology, it appears the new electricity tariff will be effective from July 1, 2023.

Banks' messages to customers

Meanwhile, commercial banks and fintech companies have already sent customers messages about the new electricity tariff.

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A message from Alat by Wema Bank to its customers reads:

"Stock up on your electricity at the current price before price increase from Saturday, July 1, 2023."

Here's how the new electricity tariff might work

Legit.ng understands that for Nigerians in Band B or C (12-20 hours/day), the new tariff could go as high as N100 per unit (kWh).

While customers in Band A (20 hours or more per day) could be charged N120 and N140 per unit.

DisCos are now awaiting approval from the Nigerian Electricity Regulatory Commission (NERC) to implement the imminent changes.

Nigerians buy N247bn electricity in 3 months

Meanwhile, in another report, the National Bureau of Statistics revealed that Nigerians spent over N247 billion on electricity in the first quarter of 2023.

It was also disclosed that the number of electricity customers has increased amid plans by the federal government to increase tariffs from July.

The federal government pays over N500 billion in subsidy monthly for electricity consumed by Nigerians.

Source: Legit.ng